Collection of Case Studies 2. - Seas of Change Initiative

PRODAP-II has supported the participation of producers and organizations in 30 trade fairs organized across thecountry and it has also facilitated the development and dissemination of monthly bulletins on prices and markets.About 80 newsletters have been delivered monthly to the organizations for the dissemination of informationamong members.3. Impact and Evolution of the initiativeImpact on target group. The producers have gained access to dynamic markets for selling their products atcompetitive prices, also thanks to the construction and rehabilitation of roads and to the support provided by theproject in marketing.The case of ACOPANELA.ACOPANELA is a cooperative of producers of dulce de panela, that makes and sells brown and granulated(refined) sugar. It provides services to its members in terms of agro-industrial production, supply, marketing,savings and credit. It began operating in 2004, with 17 members with the goal of developing productsdistinguished for their ethnic characteristics and high quality. With the support of the Ministry of Agriculture andPRODAP ACOPANELA has managed to reach a nostalgic market in U.S. cities with high immigration from ElSalvador. This involved improving the product in several ways: standardization of size and weight, colour andconsistency, quality of wrapping, and safety to health (hygiene, etc.). Technical assistance from PRODAP II onthe technical aspects of production (organic farming practices), processing and management of marketingoperations, was decisive for ACOPANELA to learn, inter alia, how to conduct market research, design andconduct surveys, develop a directory of potential buyers and improve its bargaining power. ACOPANELA isselling its products to the export market under the “La Molienda” brand.4. What are the key implications for scaling inclusive business?Key featuresEffective governance. The project has adopted a participatory approach, whereby farmers’ organizationsplayed a lead role in requesting specific investments and provision of technical assistance services (provided byEmpresas Prestadoras de Servicios).Coordinated delivery of services. The intervention provided financial services, technology transfer, technicalassistance and capacity building.Value added/Vertical integration. The producers’ organizations were involved in the whole process ofdesigning strategies and plans for improving market access. PRODAP-II financed the construction of 939warehouses with a view to reducing post-harvest losses and at the same time allow product aggregation, therebyincreasing the value of production. ACOPANELA is selling its products in the U.S. market under a brand (‘LaMolienda’).Information flow. PRODAP-II facilitated the development and dissemination of 80 bulletins on prices andmarkets, on a monthly basis.Trust. The organization of workshops and the dissemination of price and market information have contributed toincrease the level of trust and transparency among stakeholders.Horizontal integration. The project has supported the formation and strengthening of producers’ associationsand organizations. Producers' organizations have improved their managerial skills, allowing them to takeresponsibility for providing technical assistance to their members, partners and other organizations, to managetheir collaborations with other entities and to venture into more complex production initiatives (i.e. the orangejuice factory in the case of APPES and granulated sugar in the case of ACOPANELA).Provision of credit. 5,363 loans were disbursed to finance agricultural diversification, agro-industrial activitiesand off-farm activities; these loans have benefited 3,398 producers, 24% of them women.51