Growing the Wealth of the Poor - World Resources Institute
Growing the Wealth of the Poor - World Resources Institute
Growing the Wealth of the Poor - World Resources Institute
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woods for <strong>the</strong> rare cedar <strong>the</strong>y had used before. They also adopted<strong>the</strong> collective brand “Made in Masaya” to promote a local identity.With improved product quality, design, and pricing, <strong>the</strong>EcoHamaca group was able to successfully penetrate <strong>the</strong> exportmarket, eventually shipping more than 3,000 hammocks permonth (Kanungo 2004:1–2).Despite <strong>the</strong> clear advantages, organizing and sustainingcooperatives and o<strong>the</strong>r producer associations is not simple. Forexample, most rural cooperatives start from a base <strong>of</strong> inexperience,with members who possess low skill levels and little businessexperience. They attempt to organize in <strong>the</strong> most difficulteconomic circumstances, in rural markets that are highly dispersedand very brand- and price-conscious, making <strong>the</strong>ir products thatmuch harder to market. For business consortia, setting asidedistrust and competitiveness among members is <strong>of</strong>ten a majorB U I L D I N G O W N E R S H I P, C A P A C I T Y , A N D C O N N E C T I O Nbarrier, and frequently requires an outside catalyst, such as anNGO or government department. In addition, co-ops or consortia<strong>of</strong>ten require considerable funding from outside sources inorder to get <strong>of</strong>f <strong>the</strong> ground, and finances remain a challenge evenfor successful associations (Philip 2003:21; Hellin et al. 2007:26;Kanungo 2004:6–7).Promoting Product Standards and Market ResearchProducer associations are an ideal forum in which to developstandards for product quality, harvesting practices, or manufacturingmethods to help producers improve <strong>the</strong>ir product positioningand reputation. In nor<strong>the</strong>ast Brazil, for example, <strong>the</strong> Valexportproducer association helps farmers in <strong>the</strong> Petrolina-Juazeiro areamaintain <strong>the</strong>ir melon quality—and export prices—at a high level.CONNECTIONNETWORK PROFILE: COMMUNITY MARKETS FOR CONSERVATION (COMACO), LUANGWA VALLEY, ZAMBIACommunity Markets for Conservation, or COMACO, is a commercial networkwith a conservation mission, working to expand livelihood opportunities forrural communities in eastern Zambia. Every year, thousands <strong>of</strong> tourists flockto <strong>the</strong> Luangwa Valley to visit its game parks. But its people are very poor,with average household incomes under US$200 (Lewis 2005:2). Poverty andfood insecurity have encouraged unsustainable agricultural practices and ahigh incidence <strong>of</strong> game hunting for subsistence and sale in local markets.Hoping to break this destructive poverty-environment linkage, <strong>the</strong> WildlifeConservation Society, an international NGO, formed <strong>the</strong> COMACO network in2002 (Middleton 2008).The centerpiece <strong>of</strong> COMACO’s work is <strong>the</strong> agricultural extension service it<strong>of</strong>fers to small producer groups <strong>of</strong> 10–20 households at regional training<strong>of</strong>fices (WCS 2007). At <strong>the</strong>se bases <strong>of</strong> operation throughout <strong>the</strong> valley, paidextension <strong>of</strong>ficers and volunteers have taught 30,000 villagers—representingover 2,500 producer groups—about livestock care and basicconservation farming techniques, such as natural composting and landpreparation without burning. With <strong>the</strong>se techniques, farmers grow higherqualityproduce and can provide enough food for <strong>the</strong>ir families, even in times<strong>of</strong> drought. (WCS 2007; Middleton 2008). Upon receiving training from <strong>the</strong>extension <strong>of</strong>ficers, producer group members sign a contract committing<strong>the</strong>mselves to <strong>the</strong> conservation farming practices in return for <strong>the</strong> additionalbenefits that membership in COMACO <strong>of</strong>fers. Included in <strong>the</strong>se benefits aretraining in o<strong>the</strong>r types <strong>of</strong> farming and access to free and subsidized farminputs provided by COMACO (WCS 2006a:1).The biggest incentive that COMACO <strong>of</strong>fers for joining <strong>the</strong> network and adheringto <strong>the</strong> contract is that <strong>the</strong> organization purchases produce with high valueaddedpotential—such as rice, soybeans, honey, peanuts, and freshvegetables—from network farmers at premium prices. After collecting <strong>the</strong>produce at its regional centers, COMACO processes and packages <strong>the</strong> foods atone <strong>of</strong> its three major plants and sells <strong>the</strong>m under COMACO’s “It’s Wild” brandthrough its Web site, in tourist lodges, and in urban markets (Lewis 2005:3;WCS 2007). The producer groups own 20 percent <strong>of</strong> COMACO shares, and thusreceive dividends when <strong>the</strong> company makes a pr<strong>of</strong>it (COMACO 2004:1).COMACO’s extension work and premium payments to farmers are part <strong>of</strong> alarger strategy to overhaul <strong>the</strong> incentive structure for Luangwa’s farmers,increasing <strong>the</strong>ir farm and non-farm income so that <strong>the</strong>y can become lessreliant on game hunting and environmentally destructive farming practices(Lewis 2005:3). As part <strong>of</strong> this strategy, citizens who hand over <strong>the</strong> firearms<strong>the</strong>y use for game hunting receive an eight-week training course in goathusbandry, beekeeping, dry-season gardening, fish farming, and carpentry in<strong>the</strong> Poacher Transformation Program (WCS 2007). In addition, COMACO <strong>of</strong>fersthose who grow and plant tree seedlings to minimize soil erosion an extraprice premium for <strong>the</strong>ir produce (COMACO 2007a). COMACO has also helpedform an ecotourism enterprise <strong>of</strong> bush camp accommodations and a line <strong>of</strong>jewelry made from animal snares that farmers have turned in as part <strong>of</strong> <strong>the</strong>Poacher Transformation Program (COMACO 2007b). As it matures and continuesto <strong>of</strong>fer an expanded slate <strong>of</strong> capacity-building and marketing services,COMACO has taken on many <strong>of</strong> <strong>the</strong> characteristics <strong>of</strong> an intermediary supportorganization, with <strong>the</strong> goal <strong>of</strong> geographically scaling its effects throughouteastern Zambia. It has also taken on ISO characteristics in its work with localand national government <strong>of</strong>ficials and NGOs at all levels as it expands.While not yet financially self-sufficient, COMACO has produced positiveresults for <strong>the</strong> communities <strong>of</strong> <strong>the</strong> Luangwa Valley during its five-plus years<strong>of</strong> work. One thousand households have begun to grow dry-season gardensand fruit trees using <strong>the</strong> solar-powered fences COMACO has helped finance.Farmers are now eating more fish, thanks to <strong>the</strong> 150 fish ponds COMACOhas facilitated. On-farm composting combined with o<strong>the</strong>r conservationfarming techniques (skills taught in COMACO’s extension courses) helpedincrease maize yields <strong>of</strong> participating farmers by over 19 percent between2005 and 2006 (WCS 2006b:4). And hunters that formerly used illegaltechniques to catch wild game have doubled <strong>the</strong>ir legal incomes sincejoining <strong>the</strong> program. In fact, former hunters surrendered 40,000 illegalsnares and 800 firearms between 2001 and 2006. As a consequence, <strong>the</strong>local wildlife population has stabilized and slightly increased in someplaces—a trend that suggests that <strong>the</strong> network’s commercial and conservationmissions are compatible (WCS 2006; WCS 2007).103