MUNZSSInlD - usaid

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MUNZSSInlD - usaid

9.0 SUlDANIES OF KEY ANALYSES

9.1 TECHNICAL ANALYSIS

A Technical Analysis for EXITOS is attached as Annex D. PROEXAG was

predicated on the belief that improving "know-how" and "know-who" are critical

to promoting ETA exports from Central America. Acknowledging that most of the

same conditions prevailing during the life of PROEXAG remain applicable,

EXITOS expands and builds upon this premise and concurrently addresses many

"second generation" UTE issues. EXITOS therefore continues to focus on the

deal-making process, but will at the same time work on improving access to the

data, information, technology, inputs, equipment, services, contacts and

business know-how required to further improve the state of the CA produce deal.

Experience clearly shows that judicious investments in technology development

and adaptation are central to the NTE process. One simply cannot launch a

program by just importing the required technology--rather on-site adaptive

research is needed to adjust technology to the realities of the grower's

environment. Lessons learned from Latin American countries (e.g., Chile and

Mexico) that have succeeded broadly in promoting NT exports confirm the need

for long-term (15 years or more) support to ensure sustained success.

An important point reaffirmed time and again under PROEXMG, however, is that

technology cannot stand alone. To facilitate exports, a workable framework

with appropriate incentives is required for transferring production technology

and market information to growers. The produce "deal" is a useful means of

concentrating the TA required to identify weak parts in the export chain,

providing the "know-how" to overcome weakness using available information and

technology, and applying this knowledge to remedy weak points.

Past experience also clearly show that research-extension capabilities are an

essential foundation to long-term agronomic performance of non-traditional

crops. The NTE industry cannot survive over the long term without the

indigenous agronomic support that is capable of identifying and remedying

diseases, pest infestations and productivity constraints. Because public

sector commitment in research and extension is either weak or inappropriate to

NTE in Central America, and because private sector adaptive research systems

are in their infancy, individual entrepreneurs generally have to make their

own investments and acquire their own expertise vi-i the technological

needs of the respective commodity. By accepting these realities and applying

self-starting technological interventions, entrepreneurs have crossed the

technological bridge to financial success. EXITOS will build upon PROEXAG

success in this respect by applying and fine-tuning successful methodologies

that promoted NTE, and by increasing the availability nf new production

technologies and marketing expertise to local enterprises.

Finally, successful exportation of NT products requires recognition that each

combination of crops, product forms, and end-markets is unique. It

acknowledges that "know-how" is not just having a knowledge of agriculturnl

production skills, but an understanding of overall system technology.

Successfully promoting NTA exports therefore requires: (1) improving

entrepreneurial access to the results of applied experimentation (adaptive

9-1

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