Collection of Case Studies 2. - Seas of Change Initiative

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First findings of research of the International Institute of Tropical Agriculture in Uganda are very encouraging.Results show that intercropping coffee and banana appears to be more profitable than coffee mono-cropping.Since smallholders in sub-Saharan Africa are often resource-constrained the intercropping systems like coffeebananamay provide an opportunity to optimize resource-sue efficiency, allow farmers to spread risks, and strikea balance between food and cash generation. 22Case set-upThe plantain chain of coffee farmers supported by VECO is situated in the province of Zamora Chinchipe, locatedin the Amazon region.Chain related dataPlantain production: 2,962 to 3,360 tons of plantains per year, of which 1,163 tons by APEOSAE, APECAP andACRIM. To produce 1 ton of chips, 4 tons of plantains are required.Plantain demand: 2,240 tons of plantains per year, of which Ethiquable demands 5%, local mar-kets some23%, regional markets 38%, domestic consumption 4% and animal consumption 6%. There is no demand forthe remaining 24% at this moment in time.Production cost: USD 0.13 per kilogram (national average USD 0.10 per kilogram).(López and Choez, 2009)Average farm size:28% of banana producers have up to 1 ha of crops, 18% of producers have between 1 to 3hectares of banana crops (Flores, 2011).3. Problem analysisMain problems/bottlenecks faced by coffee farmers in the plantain chainA problem arose when family farmers discovered that their production capacity (coffee) was insufficient tosupport their families, particularly in times of crises, be it because of bad climatologic conditions or low marketprices. Hence, FAPECAFES looked for chain improvements with the help of Ethiquable, a French importer of fairtrade products. Together they looked into the coffee cultivation process and they explored the option ofcommercialising plantains, which were growing in between the coffee plants.A general problem that FAPECAFES faces at the moment is the uncertainty in demand for plantains and chips. Ifproduction and storage capacity would increase as planned, the supply for which there is no demand would riseeven further. FAPECAFES is working on these capacities, it has made projections for the coming years on theselling possibilities, and is executing a feasibility study for building a chip processing plant of their own.Another impediment to the sector’s growth is the high cost of processing plantains into chips and the completeabsence of organically produced chips. Although the chips produced from Zamora Chinchipe’s plantains alreadybear the fair trade label, the origin of the chips is insufficiently traceable to give it any organic label. The problemat the processing level is the difficulty in obtaining the appropriate oil (which is organically certified).A third element to afflict the plantain’s sector is the absence of a government sanctioned framework to streamlineproduction processes and market chains. Efforts have stalled to implement an initiative that would stimulate andcontrol production and marketing processes of the plantain and feed policies to increase the plantain’scompetitiveness on the market.A fourth impediment for the plantain farmers (and others) is the bad condition of regional and local roads in theregion, complicating the movement of goods, especially under bad weather conditions. Collection and storagefacilities in the region are insufficient, causing delays in the primary processing, under-optimal use of labour andloss of produce. A last important hindrance concerning infrastructure is the absence of a factory that couldprocess plantain into organic chips, charging lower processing costs.4. Evolution of the initiativeFarmer organisation and its pathway towards sustainabilityUnderlying motives of FAPECAFES for investing in plantain chipsThe coffee farmers of Zamora Chinchipe have traditionally, since colonial times, been growing plantains, but forthe sole purpose of providing shadow to the coffee plants and for auto-consumption. The plantains from the22Similar findings have been found in studies conducted in Nigeria, Ghana, Nicaragua and East Africa.57
coffee plantations were sold at dump prices on the local markets. This situation changed when the coffeeproduction did not result in sufficient income for the farmers and their families, in part due to plummetinginternational coffee prices.Hence, FAPECAFES looked for chain improvements with the help of Ethiquable. Together they looked into thecoffee cultivation process and they explored the option of commercialising plantain, which grows in between thecoffee plants. ETHIQUABLE identified the plantain chips first, because of market demand. Afterwards, theystudied the production’s conditions.This commercialisation started both on the domestic and international markets. Especially for the internationalmarkets, the organisations aim to meet the growing demand for fair trade and ecological products, such aschips.Approach and actions of FAPECAFESTo answer the many challenges for plantain producing coffee farmers, FAPECAFES has sought support of outsideactors to improve its institutional capacity in developing the plantain chain. These are, among others, Ethiquable(which has focused on the wholesale and retail of plantain chips from the processing plant to consumers) andVECO Andino (which collaborates with FAPECAFES on the value chain from cultivation to processing).For the period of 2010-2013, FAPECAFES has planned actions to improve the plantain production chain’ssustainability (economic, environmental, socio-cultural and institutional).Since the initiative is still running, there is no impact measured, nor can we conclude on key implications forscaling inclusive business. The following section therefore sums up the actions of FAPECAFES to contribute todifferent forms of sustainability.5. Actions of FAPECAFES contributing to sustainabilityActions of FAPECAFES contributing to Economic SustainabilityIncrease farmers’ incomeThe main objective of the interventions is to consolidate the plantain value chain and improve the income of thefarmer families associated with FAPECAFES. This includes developing technical and commercial strategies toincrease storage and processing capacity, improve the product’s quality and boost sales on the domestic andinternational markets. There is a big focus on capacity development of the grassroots organizations andFAPECAFES, be it via workshops, consultancies or technical assistance to improve the plantain chain, fromcultivation to commercialisation. The production of chips provides coffee farmers with an extra income, althougha considerable part of their production goes to low price channels. Finding new markets for their products will bekey in sustaining an increase in the farmers’ income.Develop long term relationships in organic and fair trade marketsFurthermore, technical, administrative and commercial capacities of the grassroots organisations and ofFAPECAFES need to be strengthened, to ensure long term organisational and financial sustainability. Specialattention will be devoted to develop long term commercial relationships in the markets of organic and fair tradeproducts. Therefore, with the facilitation of VECO Andino, the organisation works on the creation and functioningof a Plantain Management Committee for the southern part of the Ecuadorian Amazon region, to create inter- andintra-regional partnerships and strengthen the bargaining position of plantain producers on a commercial andpolitical level.Actions of FAPECAFES contributing to Environmental SustainabilityPromotion of organic farmingFAPECAFES seeks to promote a sustainable agriculture chain for plantain through diversification in productionand cultivation of crops according to the standards of organic farming. In this respect, a proposal will bedeveloped for technical assistance and technology transfers for sustainable plantain farming. FAPECAFES isexploring options for a technical service (consultancies of private companies) supporting farmers in theproduction of plantain using a sustainable agriculture approach.58
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Page 61 and 62: Appendix 1: Overview chain actorsPr
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