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MUNZSSInlD - usaid

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comparative advantage are relative and subject to change. Entrepreneurial<br />

capability is not only important in identifying and exploiting competitive<br />

advantages, but in maintaining that advantage and expanding or adding to it<br />

over time. The case study summarised by PROEXAG in illustration A (attached)<br />

demonstrates how one firm in the PROEXAG activity made good use of marketing<br />

opportunities for a commodity that has its own unique grower/exporter<br />

environment.<br />

3.0 THE RIGHT TECHNOLOGY<br />

Research and extension are the essential building blocks for long-term<br />

agronomic performance in any agricultural system. It is especially critical<br />

in a non-traditional system where new crops are being exploited. Successful<br />

experience establishing non-traditional export crops in the U.S., Chile,<br />

Mexico, and New Zealand strongly suggests that the main impetus and direction<br />

for NTAE-type development has to come from the private growers, shippers and<br />

exporters themselves. Yet these businesses remain high risk ventures because<br />

they: (1) usually involve a relatively new crop that has an unproven local<br />

technological base, thus needing considerable local Ldbptation; (2) are<br />

subject to unpredictable weather and ever-increasing pest and disease<br />

problems; (3) generally involve a highly perishable crop; (4) have very little<br />

agro-ecological margin for error or correction; and (5) require consistent and<br />

timely access to inputs.<br />

The reality is that NTAE enterprises have little "learning time" in any given<br />

season to make necessary corrections and/or modifications. New crops also<br />

often perform unpredictably in new and untested environments, and therefore<br />

site-specific technologies need to be tested and worked out. This takes<br />

time. Establishing and sustaining these enterprises in the region then<br />

becomes a long-term undertaking. It took over 15 years in Chile and 20-30<br />

years in Mexico, for example, before many of these "new crop"-oriented<br />

businesses became self sustaining. Even with the proliferation of quality<br />

research complexes around the world, it must be recognized that much of the<br />

technology is still generated and tested on experiment stations under more<br />

controlled environments. Not enough of this is being tested over a long<br />

enough period by working farmers on their own farms and under realistic<br />

conditions of work and actual site-specific agro-ecological conditions.<br />

Because the public sector role in the overall research-extension system is<br />

often times weak, and the private sector adaptive research program for the<br />

non-traditional crops is in its infancy, individual entrepreneurs often have<br />

to make their own investments in adaptive research to identify the appropriate<br />

technology for growing crops under CA agro-climatic conditions. The important<br />

lesson here is that in case after case in Central America, success has been<br />

possible when the -xporter and grower maintain control over technological<br />

needs and themselves secure the best available resources.<br />

In Guatemala, for example, a melon eqoitia venture whch became very<br />

successful was based on a technology adaptation process using resources and<br />

technical expertise from local and stateside research institutions. 'This<br />

process, which took place over several seasoas,4locused on varietal<br />

D-2

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