Collection of Case Studies 2. - Seas of Change Initiative

13. Pathways towards sustainability: Farmer Organisations in thedriver’s seatAuthor and organisation: VECO/VredeseilandenThis case is one of a series specifically prepared by VECO/Vredeseilanden and local partners for the “Seas ofChange” event. The business partner involved in the case is FAPECAFES.Why is the case an interesting example?The case is interesting because FAPECAFES looks for chain improvements (with the help of Ethiquable) forplantains grown as shade trees for coffee. It is also interesting since not much research has been done onbenefits for farmers on intercropping coffee and plantain.1. Context and backgroundCoffee and plantain sub-sectors in EcuadorWhile Ecuador was the world’s 10 th biggest coffee exporter in 1990, 10 years later export figures plummeted toless than half of their 1990 peak. Ecuador continued to produce coffee with old technologies, resulting in thelowest yields in the world and reducing Ecuador’s competitive strength on the international market –impoverishing tens of thousands of small farmer families (COFENAC 2011). The coffee sector has been selectedby the Ecuadorian Government as a ‘strategic commodity’, and the Agricultural Ministry has started a 10 yearprogram (with 38 million US$) to reactivate the coffee sector.Despite the absence of structural investments in the production of coffee, Ecuador has invested a lot in thecoffee processing industry, boosting the most modern installations to process coffee into instant coffee. As aresult, Ecuador started importing a lot of coffee for the processing industry to have sufficient supply. In responseto this problematic situation, a coffee law was approved – leading to the National Coffee Council COFENAC(1995) and CORECAF, (1998) a syndicate of the coffee sector. Yet, during the first 5 years since COFENAC,results were not that good, and also CORECAF was not functioning as it should.Plantains (cooking bananas)Ecuador is the world’s biggest exporter of bananas and the third biggest of plantain. Plantain is a staple food withhigh nutritional value, and constitutes an essential element of Ecuador’s diet (used as cooked banana orprocessed products as flour, chips, and pancakes). Currently, the plantain sector employs approximately142,500 people on a yearly basis, supplying both the domestic and international markets with 550,000 tons ofplantain in 2009. Although the demand for plantain and its derivatives comes mainly from the internal market,international markets demand is increasing.Plantain cultivation is a very inclusive agricultural activity, with women participating in all activities, yet notreceiving a fair enumeration for their work. Main concerns for plantain cultivation is the use of chemical productsand the vast quantity of waste, with organic alternatives begin in an incipient stage of development. Both nationaland regional organisations exist that represent plantain producers, f.e. FENAPROPE and FAPECAFES, which seekto influence policies to improve the development of plantain chains for small scale farmers. However, limitedorganisational capacities and issues with representation impede major changes in the field. In response to thissituation, more local initiatives have surged, although they remain somewhat isolated initiatives.2. Underlying business modelIntercropping coffee and plantainIntercropping coffee in the shadow of banana or plantain plants is a common agricultural technique, mainly usedby small scale farmers, to make optimal use of limited land. Moreover, it gives farmers the benefits of spreadingtheir risks, both in terms of price shocks on the international market and failed harvests of one crop. Despitewidespread practice by farmers across Latin America and Central and East Africa, very little research has beenconducted towards the effect of intercropping coffee with banana/plantain.56