Increasing the income of small farmers by developing and marketing their fruit produce

Programme description

Title: Increasing the income of small farmers by developing and marketing their fruit produce as finished products
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Ecuador
Lead executing agency: ETHIQUABLE
Overall term: 2009 to 2011

Context

Almost 60 % of rural Ecuadoreans are poor, with more than 30 % living in extreme poverty (source: National Institute for Statistics and the Census in Ecuador – INEC, December 2008). In order to secure a livelihood for themselves in the short term, small farmers mainly use chemical fertilisers and pesticides on their fields. There is a lack of alternative, economically viable and ecologically appropriate production, processing and marketing systems that not only help to conserve biodiversity, but also contribute to improving the living conditions of the population.

ETHIQUABLE is a French cooperative that imports Fairtrade food products from Latin America, Asia and Africa to Europe. ETHIQUABLE has been buying fruit, sugar and coffee in Ecuador since 2004. The company plans to develop and market at least three new products in Ecuador, in particular compote made from exotic fruit.

The aim is for the fruit to be supplied by small farmers’ organisations which are located around nature conservation areas and already sell their produce in the region. 700 families are involved in this enterprise, of whom 200 come from indigenous communities.

Objective

The incomes of small farmers are increased through the production, processing and marketing of fruit compote.

Approach

The ‘Sustainable management of natural resources project (GESOREN)’ has entered into a public private partnership (PPP) with the French cooperative ETHIQUABLE.

This measure focuses on processing fruit within the country in order to increase the profits of local producers and also to ensure that any negative impact on the environment (for example, as a result of the energy required to transport, store and refrigerate the products) is kept to a minimum. A company in Ambato has been selected as subcontractor to the producers’ organisations and is responsible for processing the fruit. This company has the facilities and equipment needed to ensure high-quality processing, packaging and storage of the end product.

The partners are given advice on developing recipes for mixing the fruit, complying with health regulations, carrying out market analyses and other issues.

Small farmers’ organisations receive support on technical and methodical issues to help them improve their cultivation and harvesting processes and stabilise production volumes. Training and advisory services focusing on organisational development aim to strengthen the partners’ structures. By improving and maintaining the quality of their products, farmers should also be able to meet the standards required to receive Fairtrade and/or organic certification. This will ensure that the business models used are sustainable and that the incomes of participating farmers increase in the long term. The introduction of alternative, economically viable and environmentally-friendly production methods are to increase the income of small farmers. This will also ease the pressure on natural resources and help preserve biodiversity.