Project “Aliance to Create Opportunities for Rural Development through Agro-enterprise Relationships” ACORDAR Beans iPrepared by the Beans Technical Committee: Félix Miranda Salgado, Northern Multi-Service Export and Import Cooperative Organization (CECOOPSEMEIN) Nilo Cajina, CECOOPSEMEIN Antonio Rueda Pereira, Association for Community Agricultural Diversification and Development (ADDAC) Scarleth Rodríguez Alfaro, Nicaraguan Association for Social Development (ASDENIC) Alexis Herrera, Cáritas Estelí Estelí, Nicaragua, July 2012. This publication is the product of a participatory systematization process facilitated by the International Center for Tropical Agriculture (CIAT) for the project “Alliance to Create Opportunities for Rural Development through Agro-enterprise Relationships” (ACORDAR) Julio César Martínez, CIAT Natalia Gutiérrez Martínez, CIAT Érika Eliana Mosquera, CIAT Daniel Prieto Muriel, Cintadhesiva Jhon Jairo Hurtado Bermúdez, CIAT Diana Marcela Mosquera Echeverry, CIAT Érika Eliana Mosquera Echeverry, CIAT Design and layout Facilitators and editors: ACORDAR Project: Front cover, 1-3, 5, 7-11, 13, 14, 16, 17, 19, 20, 22, 23 Neil Palmer (CIAT): 4, 18 Erika Mosquera (CIAT): 6, 12, 15, 21 Photo credits: Lynn Menédez Translation: 1About this document Producer Organizations Promoting Integrated Development with a Value Chain Approach The project “Alliance to Create Opportunities for Rural Development through Agro-enterprise Relationships” (ACORDAR) aimed to help increase the income, ensure permanent employment and strengthen the business capacities of 7000 poor rural households in 50 municipalities of Nicaragua, in alliance with municipal governments and the private sector. ACORDAR was financed by the United States Agency for International Development (USAID) and implemented by an important consortium headed by Catholic Relief Services (CRS), together with other partners such as Lutheran World Relief (LWR), TechnoServe (TNS), Global Village (GV), Latin American Financial Services (LAFISE), International Center for Tropical Agriculture (CIAT) and other local partners in the area of influence of the project. 2This project was initially established in 2007 for a 3-year period; however, given its significant impact, it was extended for another 2 years until the end of 2012 to further disseminate its results and empower more farmer families and producer organizations. The present document systematizes the experience of building a value chain for beans that benefits 4,898 bean producers in Nicaragua, and compiles the lessons learned by the Beans Technical Committee, formed by representatives of the Northern Multi- Service Export and Import Cooperative Organization (CECOOPSEMEIN), Caritas–Estelí, the Nicaraguan Association for Social Development (ASDENIC) and the Association for Community Agricultural Diversification and Development (ADDAC), located in northern Nicaragua, specifically in the departments of Matagalpa, Estelí, Nueva Segovia, Jinotega and Madriz that have high bean production potential. The report addresses the building and strengthening of the beans value chain in northern Nicaragua using innovative strategies and aims to disseminate and share study results. Feedback will facilitate the application of this approach in other regions, strengthen the existing knowledge base and influence policy makers at both local and national levels. 3Where it all began Many actors did not know the other actors involved in the chain, which reduced the possibility of feedback. Furthermore, production costs were high, yields and sale prices were low, the quality of raw materials used was poor, there was a lack of added value, little information was available and the access to alternative markets was limited. Although the actors of the different links of the bean production cycle acted autonomously, they had inadvertently created a production chain; however, only a few knew what happened to the products before or after they left their hands, and many actors did not know the other actors involved in the chain, which reduced the possibility of feedback. Furthermore, production costs were high, yields and sale prices were low, the quality of raw materials used was poor, there was a lack of added value, little information was available and the access to alternative markets was limited. Existing organizations had a weak organizational structure, with limited entrepreneurial skills, and were primarily dedicated to production. Resource mobilization was lacking, which in turn limited access to technical assistance, technological innovation, diversification of services, promotion of agribusinesses, and identification of new, profitable and risk-free markets with added value. 4The lack of economic resources also translated into poor collection facilities, which reduced the volume of product on offer and limited the capacity to negotiate with different bean clients. Roads in rural areas were in poor conditions, affecting the transportation of produce to collection hubs, which lowered sale prices and caused loss of produce. The lack of environmental awareness was also a critical factor. Contamination had been maximized by the misuse of pesticides, inadequate soil use, the advance of the agricultural frontier, and the misuse of water resources—all factors that had a direct negative impact on value chain development. The lack of familiarity with the value chain approach affected the launching of initiatives that could have taken advantage of the support offered by local governments and promoted the participation of bean producers in consultation and participatory planning processes in their respective municipalities. Nor did these organizations have gender-sensitive policies in place. As a result, given their limited participation in production, entrepreneurial and decision-making processes, women did not have access to benefits such as credit. 5Getting started The building and strengthening of the beans value chain began in September 2007 under the umbrella of the ACORDAR Project. The first step was to conduct a field survey to gather information on crop yields, production costs, areas available for planting, income, available technology and end-uses of produce. The information gathered was used as basis to plan project activities. The initial baseline survey served to define the indicators that would be used to measure value chain progress. The three partner organizations with most experience in beans were selected in participate in the study: ADDAC, Caritas–Estelí and CECOOPSEMEIN. Each organization named a representative to serve on the Beans Technical Committee. CIAT trained committee members in different aspects related to value chains so these members could select key actors from each link of the value chain: producers (cooperative organizations and individual medium-scale producers); processors such as La Dalia Union of Livestock Cooperatives, Leonel Torrez, Wal-Mart Nicaragua/Vegetables and Fruits (Hortifruti),Eco Grano, LAFISE, and the San Francisco Rice Company as well as transportation companies; financial service providers such as Bancentro, the Local Development Fund (FDL, its Spanish acronym), the National Rural Savings and Loan Cooperative (CARUNA, its Spanish acronym) and Pro Credit; and non- financial service providers such as Duwest, Rappaccioli McGregor S.A. (RAMAC, its Spanish acronym), the Nicaraguan Institute for Agricultural Technology (INTA, its Spanish acronym) and the Ministry of Agriculture and Forestry (MAGFOR, its Spanish acronym). Once potential actors were identified, a value chain negotiation workshop was held so each actor could recognize its role and participation in the different links of the value chain, depending on their functions and experience. From October 2007 to November 2008, the Beans Technical Committee worked on a Competitiveness Strategy for the beans value chain that set forth strategic objectives and specific activities to be executed by the ACORDAR Project. 6The alliances were established to obtain accessible lines of credit, better prices, input validation, joint investment of leverage funds, flexibility in procurement processes of registered seed for certification and the implementation and promotion of new technologies among small producers. The strategy was jointly presented together with bean producers to municipal authorities and other key actors, such as the national providers of financial and non-financial services. The strategic objectives of the Competitiveness Strategy focused on three links: Production, Postharvest Handling, and Marketing. Production link This stage aimed to produce high-quality beans that met market requirements and satisfied consumer preferences. It was therefore necessary to improve crop yields, and several activities were promoted accordingly. To begin, the members of the Beans Technical Committee established alliances with financial and non-financial service providers as RAMAC, Duwest, the Forest and Agricultural Products Company (PROFYSA, its Spanish acronym), Agropecuaria Bravo S.A. (ABRASA, its Spanish acronym), the National Federation of Agricultural and Agroindustrial Cooperatives (FENACOOP, its Spanish acronym), the Northern Cooperative of Seed Production and Hope (Esperanza Coop, its Spanish acronym), the Agricultural Corporation (AGRICORP, its Spanish acronym), the Integrated Pest Management Program in Central America (PROMIPAC, its Spanish acronym), the SICTA Network, the Food and Agriculture Organization of the United Nations (FAO), the Santa Lucia Bean Producers’ Association (ASOPROL, its Spanish acronym), the National Agrarian University (UNA, its Spanish acronym), the National Union of Farmers and Livestock Producers (UNAG, its Spanish acronym), INTA’s National Livestock Research Center, MAGFOR and FDL. The aforementioned alliances were established to obtain accessible lines of credit, better prices and input validation. The joint investment of leverage funds for validation was also sought as well as flexibility in procurement processes of registered seed for certification and the implementation and promotion of new technologies among small producers. A predrying tunnel for beans was accordingly purchased and fertigation applied to crops. Planting density was also reduced from 200,000 to 120,000 plants per manzana1. 1. 1 manzana (mz) = 1.72 acres or 7,026 m2 7An agreement was also signed with the Nicaraguan Union of Agricultural Producers (UPANIC, its Spanish acronym) to foster the commercial purchase/sale of beans and to promote the use of the inoculant NITRONAT as a technology to improve nitrogen use by beans. Twenty-one field technicians were contracted as part of the strategy to strengthen technical know-how of women and men bean producers as well as improve crop productivity and establish commercial relationships. These technicians, who would dedicate 50% of their time to activities related to the bean value chain, represented an administrative cost of US$284,734 (wages, social benefits, office expenditures) and an operational cost of US$141,800. The abovementioned changes made it possible to establish 126.71 hectares of certified seed to produce 2,698 quintals2 of beans. A total investment of US$12,266 was necessary, of which USAID contributed US$5,813 and bean producers, US$6,453 from their own funds. These changes in the production process were accompanied by the technical monitoring of 17,014 hectares planted to beans, 2,158 hectares of which were established by women bean producers during the five years of the project. The project benefited 4,898 women and men bean producers of northern Nicaragua. The cooperatives facilitated producers’ access to credit to produce bean seed. As a result, 1,739 hectares were planted to beans, benefiting 400 bean producers of the municipalities of Sébaco, La Trinidad, San Dionisio, Jinotega, San Nicolás, Terrabona, Condega, Totogalpa, San Ramón and La Dalia. In addition, 3,031 qq of quality seed were delivered, valued at US$180,192. 2. 1 quintal (qq) = 100 lb or 46 kg. 8The ACORDAR Project invested US$13,000 to train 1,500 women and men bean producers in aspects related to harvesting and postharvest handling. USAID contributed US$127,856 for its purchase, project partners US$5,994 and bean producers US$46,342. Similarly, 4,386 qq certified seed were also delivered, increasing yields by 11.8% between 2007 and 2012, from 11.6 to 13.09 qq/mz. An agreement was signed with the Upanic Agroindustrial Exchange (BOLSAGRO, its Spanish acronym) and the Nicaraguan Agricultural Commodity Exchange (BAGSA, its Spanish acronym) to reduce tax payments, from 3 to 1.7%. This also represented a reduction in the sales costs of the end product. The alliances that had the greatest impact on bean production were those established with RAMAC, FENACOOP, and Esperanza Coop because the co-investment of funds and technical assistance made it possible to plant 319.72 hectares to beans, valued at US$89,262. This initiative benefited 294 women and men bean producers of the departments of Estelí, Jinotega and Matagalpa. Training events and sensitization workshops empowered both women and men bean producers to establish alliances with the city halls of Darío, La Trinidad, San Nicolás, Jinotega, Esquipulas, Quilalí, Pueblo Nuevo, Condega, Palacagüina, Totogalpa, Estelí, Waslala, Rancho Grande, La Dalia and San Ramón. Bean producers took advantage of these alliances to advocate the need to improve roads and production infrastructure and, as a result, municipal governments became increasingly interested in supporting the value chain. Proof of this successful lobbying was the allocation of funds by municipal governments to repair roads in major bean production areas. Training was offered to 1,500 women and men bean producers in integrated pest 9management, certified seed production, postharvest handling, fertilization, grain standardization, nutritional uses of beans, household production, among others. The ACORDAR Project invested US$13,000 in these activities, but this figure does not include the cost of several workshops that were financed exclusively by producers. These efforts led to an increased production of seed and commercial grain, which in turn increased producers’ income and generated a higher sales tax collection in each municipality. To strengthen the business skills of producer organizations, an agreement was signed with the Tropical Agricultural Research and Higher Education Center (CATIE, its Spanish acronym) to execute a pilot-scale project “Knowledge Management for Value Chain Development3”, which consisted of gathering, processing and disseminating field data (area planted, yields, climate, prices, markets) that could serve as a crop management tool to facilitate decision making. A project was also carried out in coordination with the US Sustainable Food Laboratory4 to measure greenhouse gas emissions on small bean farms in northern Nicaragua. The initiative analyzed the carbon dioxide released and captured in production and other on-farm activities and, based on analysis results, recommended practices that could reduce the amount of greenhouse gases emitted, such as the incorporation of stubble and the use of agro-forestry systems and organic fertilizers. Postharvest handling link Bean producers contributed US$7, 577 and USAID, US$6,439, to build a collection and marketing hub in El Tule– Condega. This hub aimed to provide pre-harvest services (calculations of yields per area, harvest schedules, delivery schedules of beans to the Northern Beans Agroindustrial Center); post-harvest services (such as drying and color pre- classification); and bean quality classification. High-quality grain was sold 3. http://www.alianzasdeaprendizaje.org/tematicas-de-aprendizaje/60-gestion-de-conocimiento-para-el-desarrollo-de-cadenas-de-valor- inclusivas-y-sostenibles-k4valuechains 4. http://www.sustainablefoodlab.org/ 10 in select markets that offered higher prices because of the added value, while the rest of the produce was sold in other markets such as store retailers. The Northern Beans Agroindustrial Center was also built in the community of Santa Isabel, Sébaco, to give added value to the product —a process that involves classifying, cleaning, polishing and packaging. The center cost US$923,696, of which US$921,682 were contributed by USAID and US$2,014 by producer organizations members of CECOOPSEMEIN5, the entity responsible for managing the center that offers its processing services to producers and traders nationwide. Both facilities were designed with a capacity to process 75,000 qq per year, generating 200 permanent jobs of which 160 have been occupied by women and 40 by men. With an investment of US$7,803, eight platform scales, five moisture testers and 200 idle pulleys were distributed among the collection centers of the cooperatives of the Producers Society for Rural Business Development (APODER, its Spanish acronym), Ríos de Agua Viva, Flor de Dalia and Flor de Pancasán. Not only did the volume of end product increase, but jobs were also generated. Thirty-six workshops on postharvest management of the crop were also offered at a total cost of US$4,320. These workshops, attended by 640 bean producers, aimed to improve product quality and thus increase competitiveness in regional and international markets. Emphasis was placed on sharing know-how on postharvest handling of the product, percentage of moisture for storage, pre-classification by color and variety, and percentage of broken and damaged grains 5. CECOOPSEMEIN owns the Northern Beans Agroindustrial Center, where it offers processing services to bean producers and traders nationwide, at a cost. Both collection facilities established by the ACORDAR project generated 200 permanent jobs, 160 of which have been occupied by women and 40 by men. 11 in accordance with Nicaragua´s technical standards for beans. On the other hand, the alliances established with city halls facilitated the implementation of technical recommendations for the building of production facilities in each municipality in the area of influence of the ACORDAR Project as well as the granting of the pertinent environmental licenses to build water catchment facilities or reservoirs such as basins, small lagoons, microdams and storage facilities. Improved communication with city halls made it possible to coordinate environmental activities and to diffuse, through pamphlets, regulations and decrees that aim to protect water sources, avoid the felling of trees, help control burnings and protect natural reserves. Finally, by becoming a member of the SICTA Network6, CECOOPSEMEIN was able to share know-how and learn from the experiences of other organizations about new maize and bean technologies. An outcome of becoming member was the IICA–SICTA Network/ CECOOPSEMEIN alliance to implement the use of a predrying microtunnel to improve crop management efficiency and facilitate adaptation to climate change. This project benefited 750 women and men bean producers, reducing postharvest losses up to 40% thanks to the use of plastic microtunnels. Marketing link Export requirements and information on potential markets were shared with 116 bean producers, who also participated in three complementary business trips to El Salvador and one to Costa Rica, sponsored by CRS, to make marketing contacts for bean collection and marketing. Representatives of ASDENIC, Caritas, ADDAC and CECOOPSEMEIN participated in this endeavor and visited the La Tiendona Market, the Sandoval Businesses, the Agricultural Commodity Exchange, the San Francisco Rice Company, the El Salvador Agricultural Commodity and Services Exchange (BOLPROES, its Spanish acronym) and the Roberto Quiñones National School of 6. The SICTA Network Project is an initiative financed by the Swiss Agency for Development and Cooperation (SDC) that has delegated project management and execution to the Inter-American Institute for Cooperation on Agriculture (IICA). The project carries out activities in the seven Central American countries to promote technological innovation with small maize and bean producers and strengthen the Central American Agricultural Technology Integration System (SICTA, its Spanish acronym). For more information, see http://www.redsicta.org/. Producer organizations, associations of maquila workers and exporters linked to the ACORDAR Project became members of APEN, formed part of the Beans Sectoral Commission, and served on the National Beans Committee. 12 7. The ACORDAR Project designed the governance commissions as a consensus-building mechanism among different actors of each chain with which it worked, but these commissions were consolidated thanks to the alliance with the Association of Producers and Exporters of Nicaragua (APEN, its Spanish acronym). Because APEN already had sectoral commissions for other products, the commission created for beans within the ACORDAR framework was called the Beans Sectoral Commission and today is one of the most active, influential and representative organisms of the private sector, which includes bean cooperatives. Agriculture (ENA, its Spanish acronym) in Santa Ana, El Salvador, as well as the Jinca Group Processing Company and the Fruits of the World (FRUMUSA) company in Costa Rica. On the other hand, the Beans Technical Committee made arrangements so that the organizations forming part of the beans value chain could become members of the Association of Producers and Exporters of Nicaragua (APEN, its Spanish acronym), which later derived into the formation of a Governance Commission called the Beans Sectoral Commission7. Producer organizations, associations of maquila workers and exporters converged in this Commission, establishing collaborative ties and sharing information to strengthen the beans value chain. Commission directives were acknowledged not only by producers but also by the business sector, which facilitated its inclusion on the National Beans Committee of the Nicaraguan Government, and were able to represent local entities. Actors managed to exert influence on governmental entities through a series of activities, such as negotiating the bean quota export system to guarantee national food security and the permanent offer of beans. Economic, technical and physical resources were allocated to strengthen entrepreneurial endeavors of producer organizations, aiming at their self- 13 sufficiency. A diagnosis was initially performed by the Nicaraguan Institute of Development and the Program for Business Development Services (INDE– PROSEDE) and self-appraisals were made using the Learning Alliance8 approach. Support was also provided in the organization of and participation in 15 national and municipal fairs, where 502 women and men bean producers had the opportunity to showcase and offer their beans to potential buyers and establish commercial relationships. There were also external factors that facilitated value chain development: the Dominican Republic- Central America Free Trade Agreement (CAFTA–DR); the opening of the Southern Common Market (MERCOSUR, its Spanish acronym); the commercial relationship with countries of the South such as Venezuela; the existence of the Central America CA–4 Border Control Agreement between Honduras, Nicaragua, El Salvador and Guatemala that facilitates exports and imports; and the presence of external donors interested in supporting the beans value chain, which helped bring together the actors participating in each link to achieve the equitable development of the chain and raise awareness about the need to redistribute the profits obtained from the product in a better way. Another positive factor was the creation of a space for consensus-building by the Nicaraguan Government—the National Beans Committee—of which the Beans Sectoral Commission forms part. This space allowed actors of the beans value chain to not only gain representativeness and governance, but also increased their capacity to influence public policies in support of improved marketing of beans. 8. The Learning Alliance (AdA, its Spanish acronym) [http:/www.alianzasdeaprendizaje. org/la-partnership-today] is a consortium of organizations working for the inclusive and sustainable development of rural Central America, promoting the sharing of learning processes among diverse actors. Its 2008-2010 learning cycle gathered 17 organizations (both within and outside ACORDAR) that worked to strengthen their socio-organizational and entrepreneurial capabilities, starting with a self-appraisal of their enterprises, which allowed them to identify needs and/or weaknesses that would serve as basis to then prepare a participatory strategic plan. 14 Other factors, however, affected the value chain adversely such as price fluctuation, which makes it difficult for organizations to make reliable business forecasts, thus increasing marketing risks and the possibility that not only producers but also buyers breach contracts. And as if that weren’t enough, the Nicaraguan Government established policies to control bean exports as alleged measures to guarantee plant health and food security because of crop losses. These measures were in force for 1 year and triggered the fall of market prices and seriously affected commercial relationships. Clients were lost in every link of the chain. In addition, there was no solid policy in place that fostered bean production and marketing, which affected commercial relationships and profits along the value chain because the policies regulating sale prices fixed prices that were lower than production costs—primarily affecting producers. 15 Fairer commercial relationships because of the signing of contracts and trade agreements were another outcome of the ACORDAR Project. These ensured better prices and increased stability for the bean sector. Thanks to these alliances, organized producers now pay up to 20% less for the inputs required to produce beans. The results Each actor participating in this endeavor (providers of inputs and financial services, producers and producer organizations, traders, processors, exporters, municipal governments and governmental entities) managed to interact with the other actors depending on their functions and interests within the links of the chain. Overall outcomes of the ACORDAR Project can be summarized as follows: • Fairer commercial relationships because of the signing of contracts and trade agreements, which ensured better prices and increased stability because of the co- investments to produce and collect beans. • Plant health packages made available for improved bean crop management. • Opportunities created to access new market niches by offering a value- added product. Specific results related to each link of the chain are detailed below: Production link The relationships established with service providers allowed access to credit, inputs, technical assistance, technology and infrastructure, factors that have fostered investment in production, strengthened agriculture services offered by cooperatives, increased yields and product quality, reduced environmental impact and facilitated the access to markets with competitive sale prices. Bean producers are now organized and can purchase inputs at accessible prices through alliances that have negotiated preferential prices with distributors, costing up to 20% less than traditional market prices. Alliances with governmental entities such as INTA and MAGFOR were important because these institutions coordinated exchange visits and training events. They also facilitated the registry of producer organizations as certified bean 16 seed producers that complied with the requirements and indications of INTA and MAGFOR regarding crop management. Similarly, the alliances with MAGFOR, IICA, UNA and CECOOPSEMEIN made it possible to execute the project “Strengthening the Certification System of Accredited Services and Implementation of Sanitary and Phytosanitary Measures, Quality and Safety of Agricultural Products (MOTSSA). This project invested US$8,400 in the infrastructure of three farms to showcase Good Agricultural Practices (GAPs): storage facilities, mixing areas, packaging areas, showers and sinks, labels and crop management handbooks. Producers have also improved their production and postharvest management techniques. They now use at least three project-promoted technologies (certified seed, appropriate plant population, and use of inoculant to fix nitrogen). As a result, product quality has improved and yields have increased from 11.6 to 13.09 qq/mz, both factors important for market sustainability. Bean producers are now more familiar with quality standards for field-grown beans and are capable of estimating the percentage of loss at collection. This allows producers to add value to their produce by adopting measures beforehand such as classifying the grain before transportation to the collection and processing hubs, thus increasing the percentage of top quality beans and reducing sales expenses. Nonetheless, the improvement in product quality should also be attributed to the training producers have received in market-related issues as well as the lessons learned during exchange visits. These experiences have undoubtedly helped producers better understand national, regional and international market demands and adjust their production to these requirements accordingly. New production and postharvest management techniques have increased crop yields from 11.6 qq to 13.09 qq/mz. 17 Despite Nicaragua’s climate, producers have been able to take advantage of three production seasons depending on the area where they are located. As a result, beans are harvested 8 months a year, directly benefiting 4,898 producers of the different cooperatives participating in the ACORDAR Project because profits are redistributed proportionately among cooperative members. In addition, bean producers now exert greater influence on how the municipal budget is allocated, which is clearly evident in the investment of US$13,218,680 made by 15 municipalities in northern Nicaragua to improve and maintain access routes (filling of potholes, leveling, drainage with gutters and sewerage, installation of road signs). Finally, to facilitate the access of bean producers to technology and provide advisory services to producer cooperatives related to project formulation and preparation of business plans and competitiveness strategies for the agri-food chain, two sales points were opened: one at the Agri-Services Center of the Multi-Service Cooperative of Esquipulas (COOSEMES, its Spanish acronym), located in the municipality of San Dionisio, and the other at the Agri-Services Center of the Multi- Service Producers’ Cooperative of Jinotega (COOSMPROJIN, its Spanish acronym), located in the community of Sasle, municipality of Jinotega. One sales point already existed at the Multi-Service Cooperative La Trinidad (COOSEMTRI, its Spanish acronym), located in the municipality of La Trinidad, Estelí. Postharvest handling link Producer organizations now make better use of their collection and processing hubs to consolidate and market their products with added value. Some organizations have achieved sustainability and permanence in the market by complying with Nicaragua’s technical standards for export beans. 18 The certification of Good Manufacturing Practices (GMPs) has begun for the Northern Beans Agroindustrial Center, owned by CECOOPSEMEIN, in association with APEN. Three manuals have been prepared: the Occupational Safety and Hygiene Manual, the Contracting and Rules of Procedure Manual, and the Functions Manual for the Joint Commission. The areas for processing and storage were clearly delimited and signs were installed. The Joint Commission was subsequently formed, whose main function is to coordinate activities related to the certification of GMPs. This Commission worked to successfully obtain the sanitary license for the Northern Beans Agroindustrial Center. As part of the strategy to improve chain competitiveness, 19,960 kg of beans were packaged in polypropylene bags under buyer brands in presentations of 0.5, 1 and 2 kg, generating a new source of employment for new producers. Finally, under the IICA–SICTA Network/ CECOOPSEMEIN alliance, 20 transparent plastic tunnels were established on bean- producing farms to reduce harvest losses due to heavy rains up to 40%. Twenty drip irrigation systems were also set up to promote fertigation using water-soluble fertilizers to produce bean seed during the dry season, thus guaranteeing the supply of seed for planting in the rainy season. Marketing link Till July 2012 and throughout the entire project, 36,000 qq value-added beans were marketed, benefiting 1,400 families directly and other actors, such as transporters and clients, indirectly. The Northern Beans Agroindustrial Center has processed and sold, during 30 months of operation, 22,000 qq bean as quality end product using produce from small producers’ cooperatives. These cooperatives managed to do business not only at the national level with the Agricultural Marketing Company, LAFISE, Wal-Mart/Hortifruti, Multi-Service Cooperative for Nicaraguan Grains (GRANIC, its Spanish acronym), Nicarao Agri-Services Cooperative (NICARAOCOOP, its Spanish acronym), Union of Multi- Service Cooperatives of Northern Nicaragua (UCOSEMUN, its Spanish acronym), Central American Commodities Trading (CAC Trading), Agro-Export 19 Technology (TECNOAGRO, its Spanish acronym), Omar Fletes, and the Police Station, but also at the regional level with Precocidos de El Salvador, Allfood and Nexus S.A. and at the international level with Global York and Grain Depot. Traders linked to the ACORDAR Project shared information on prices and markets (price fluctuation, windows of opportunity and market niches) with bean producers. This exercise enabled CECOOPSEMEIN to position itself as a provider of high-quality services and products on the national market. The sales figure reached during the project should be highlighted: 316,568 qq, which is equivalent to US$11,375,955, of which producers generated US$1,338,425. Now that producer organizations comprehend the value chain approach, they can better understand how the market operates and the importance of demand- based planning. Furthermore, cooperatives are now prepared to design a planting and harvesting schedule that allows them to predict how much they will produce. They are also aware of the importance of adding value to the grain and of keeping abreast of marketing channels. Women and men bean producers are now informed about the importance of standardizing product quality at processing (predrying, percentage of moisture, percentage of loss). Associativity was promoted with the establishment of planting schedules to ensure satisfaction of market demand and better prices. Purchase orders and sales agreements proved to be very useful tools to ensure compliance. The organizations of the marketing link already have manuals on policies, financial requirements and business plans, which makes it easier for them to access credits with banks and other financial entities. Producers are now able to access funds to cover the production costs of commercial grain and bean seed. The coordination among the different actors of the value chain has improved. Bean producers are now better informed about market prices and demand, and their organizations have positioned themselves in alternative fair-trade markets where products can be sold at better prices. The National Beans Committee was created as a result of the synergy in the chain. This committee is Throughout the project, 316,568 qq of beans were sold, which is equivalent to US$11,375,955. 20 headed by MAGFOR and includes representatives of the Ministry of Promotion, Industry, and Trade, INTA, the Rural Development Institute (IDR, its Spanish acronym), APEN, UNAG, the National Farmers Union of Associated Producers (UNAPA, its Spanish acronym) and UPANIC. The technical standards for export beans have been updated to promote community seed production centers. The quality of Nicaraguan beans is also being promoted on the international market as well as the sale of packaged beans under national brands, as part of a strategy to promote the added value of the product in different markets. Sale agreements are currently prepared with advanced payment to guarantee fixed bean prices. The management of all cooperatives keeps informed about entry and exit prices of beans in local benchmark markets at time of collection, and regional and international prices are monitored by Internet, e-mail, cell phone calls, and even face-to-face meetings with bean-related commissions and committees. A primary field information system is also in place, with data on the prevailing price for beans per area and final destination of produce, supply on offer, bean varieties and quality, and estimated yield of quality beans during processing. This information system facilitates the preparation of collection schedules for each cooperative. 21 Lessons learned • The alliances established between producers and other actors of the beans value chain evidenced the importance of promoting co-investment among buyers, traders and producers so risks are shared and collection and marketing processes streamlined. Because of the increased commercial associativity, organizations become sustainable and are more equitable in terms of income and risks. Sales should also be secured through purchase orders and sales agreements to endorse fulfillment by both parties. • Programs that finance production through marketing should be promoted to guarantee the permanence of the variety in market demand. These programs should help build the capacity for collection/processing and position the product in the market through business missions, fairs, design of brand name, diffusion and promotion. This will increase credibility before buyers and ensure greater permanence in the national and international markets. • Market segments that consume quality, value-added products should be identified because these segments are more profitable. Value-added products are more competitive in the international market because of their demand by consumers who do not have time to clean and select beans as well as regional exporters who do not have the infrastructure to give added value to beans. These processes also generate more permanent jobs in the area. • The participation of actors, such as intermediaries, maquila workers and exporters, in APEN’s Beans Sectoral Commission should be promoted as well as their participation in the different bean-related committees promoted by the Nicaraguan Government (Technology, Added Value, Marketing) to present proposals that facilitate and encourage marketing activities. • Members should be sensitized about the importance of increasing the It is important that the technologies being promoted are sustainable and environmentally friendly. 22 amount of produce they contribute to cooperatives. Each member is currently contributing 1 qq of beans per planting subcycle. Increasing contributions would, in turn, increase available working capital and also facilitate resource mobilization. • Training programs using the family SME approach should be promoted to facilitate the creation of small family businesses linked to producer organizations responsible for promoting the sale of locally harvested products, adding value to these products and developing marketing skills. This would also be another source of income at the local level and an opportunity for family members, especially women, to learn how to add value to farm products, how to negotiate, how to innovate and how to obtain income without intermediaries who cut producers’ profits. • The technologies being promoted should not only be accessible (inexpensive and easy to use), but also sustainable. Such is the case of certified seed, inoculants and appropriate plant densities, among others, that allow bean producers to harvest a high-quality product and improve yields without harming the environment. • The alliance with municipal governments is decisive to promote the dialogue between municipal authorities and producers. Training events are also important so producers can learn about the legal framework that endorses their participation in spaces such as the allocation of the municipal budget. Producers are empowered to influence how funds are used to benefit their communities. 23 • The increased participation of women in directive positions as well as production, value added and marketing activities should be promoted. It is important for women to participate in decision-making processes and promote the access of other women to the chain. Women in management positions serve as models and motivation for other women, and make it easier for other women members to access new resources, knowledge and technologies that will improve their quality of life and open opportunities for them to have their own source of income and thus contribute to the family income. • Activities that lead to the efficient use and management of water resources should be encouraged to prevent soil erosion, protect water sources and promote reforestation, in addition to ensuring food production in bean- producing households. 24 25 This publication compiling the work of the ACORDAR Project is made possible by the generous support of the American People through the United States Agency for International Development (USAID). The contents are the responsibility of the ACORDAR Project and do not necessarily reflect the views of USAID or the United States Government. Producer Organizations Promoting Integrated Development with a Value Chain Approach