Elizabeth Jiménez, Alejandro L. Romero, Corinne Valdivia

Figure No1: How important is the Household income levels in peasant communities of The three most important crops commercialization of agricultural products? Ancoraimes are amongst the lowest in Bolivia. On commercialized in Ancoraimes are:

Between 15% and 70% of cashed income comes average, per-capita income in Ancoraimes is U$XX onions, peas and potatoes. Specialization from wages as a result of temporary migration which is three times lower than the national average. seems to be a feature for some 100% communities such as Chinchaya, 90% 80% Temporary migration and participation in waged labor 70% Karkapata and Cohani that have 60% markets is a very important source of income. On 50% specialized on the sale of either onions or 40% 30% average, about 25% of cash income comes from wages 20% peas. For communities such as 10% derived from temporary migration and engagement in 0% Chojñapata and Calahuancani, sale of paid employment outside their own communities. animals (sheep and cattle) are the most Cohani The role of wages and temporary migration is different important source of cashed income from Karcapata Chinchaya Chojñapata Calahuancani ANCORAIMES across the communities. For some communities, agricultural activities. ACTIVIDADES AGROPECUARIAS LABORAL ACT IVIDADES INDEPENDIENTES OTROS INGRESOS cashed income derived from migration is very Figure No3: Commercialization of crops Figure No2: Market opportunities: Animals, important. These are the cases of Cohani and Onions, peas and potatoes are the three most important Crops or Sub-Products Karcapata (Figure No1) where about 60% of cashed crops for commercialization Distribucion porcentual del ingreso efectivo income comes from wages. In the cases of Chojñapata agropecuario en Ancoraimes 100 and Chinchaya, commercialization of agricultural 90 80 100 products make up to 75% of the household income. 70 90 80 While no generalizations regarding the role of 60 70 50 60 commercialization of agricultural products within 40 50 30 40 20 30 communities in Ancoraimes can be made, per-capita 20 10 10 income is higher in communities where agricultural 0 0 production is still the most important source of income. Cohani

Cohani Thus, income diversification through migration is an Karcapata Chinchaya Karcapata Chinchaya Chojñapata Chojñapata

Calahuancani alternative adopted in lower income peasant Calahuancani ANCORAIMES communities. ANCORAIMES ingresos subproductos ingreso venta de animales papa cebolla arveja ovino otros ingreso venta prod.agricolas

How markets function: characteristics and transaction costs

Figure No 4: Commercialization of onion The degree of commercialization and the types of crops commercialized varies across communities. In the case of onions for instance, they are the number one product for Chinchaya, where 98% of its production is aimed at the market.

Chojñapata # N

W E S For onions, can be commercialized either in the some community where they are produced or market Calahuancani of the city of El Alto located at about 95 km (figure No 4). In the city of El Alto, three different Cohani markets for onions have been identified (Faro Murillo, Río Seco, La Ceja). The price for arroba (about Mdo. Karcapata Chejepampa 11 kilos) is higher in the markets of the City of El Alto than in the community where onions are most

C ar re te likely seld to “rescatista”. There are no significant price differences in the markets of El Alto, thus ra p ri nc ip Chinchaya al P=30 showing that prices in the different markets of El Alto are more or less the same. P= 25#

Lago Titicaca TC= 1.40 Ciudad de El D= 95.63 km Alto: Mdo. Faro Murillo, Mdo.Río As expected, transportation costs and time spent in taking onions to the El Alto are higher than Seco, Mdo. La Ceja selling them at the community. It would be expected that higher prices in El Alto compensates for other transaction costs and allows for a higher profit.

In the case of peas (Figure No 5), commercialization is carried out within Potatoes are sold either at the local peasant market or in the the community, in the regional peasant market of Chejepampa and in two markets of the city of La Paz (Figure No 6). Again, prices are popular market sites of the City of La Paz. As expected, prices are higher higher in La Paz, but there are also higher transaction costs in in the markets of La Paz. Transaction costs for reaching La Paz, as reaching this market. reflected in transportation (TC) and the opportunity cost of time, are also

higher. Figure No 6 Commercialization of potatoes Figure No 5 Commercialization of peas TC= 1.32 Chojñapata D= 111.65 km P=14.5 Chojñapata # N W E # N

S W E S Calahuancani Calahuancani TC= 2.40

D= 104.56 km C a CohaniTC= 1.84 Cohani r r e t e D= 108.72 km r a

s e c u Karcapata n d Mdo. Mdo. a r P=12.3-14 i Karcapata a Ciudad de La Chejepampa P=19 Ciudad de La Chejepampa C ar Paz: Mdo. re Ca P=18.7 Paz: te rr ra Chijini, Mdo. et p er P=20 Mdo.Chijini,Mdo. ri a nc pr ip Rodríguez in al ci Rodríguez Chinchaya pa P=13.2 P=16.7 l Chinchaya P=21.7 # a 16.7 # Lago Titicaca TC= 2.58 Ciudad de El Lago Titicaca Alto: Mdo. Faro D= 101 km Murillo, Mdo.Río Seco, Mdo. La Ceja How often is commercialization carried out? Figure No 7 Frequency for sales

For peasant communities in Ancoraimes, peas and onions can be More than 50% of producers sell onions and In Karcapata and Cohani 50 % of In Chojñapata 47 % of potato producers sell peas atleastonce a week peas at least once a week producers sell onsly "when need" characterized as "cash crops" while potatoes represent a crop that is once 2-5 times a 1-5 times once a every week two both, used for consumption and commercialization if needed. One year a year 2-4 times every once a only a year we e ks two way to assess this is by identifying the frequency in which products week months once a "when are commercialized (see Figure No 7). When asked local producers, year needed" more than 50% responded that both onions and peas are once a every only year commercialized weekly while a similar percentage of potatoes every two two once "when once every needed" months every producers responded that potatoes were only commercialized "when two weeks months needed". How to access market related Are market shifts a threat for local producers? information? Shifts in market prices are not perceived as a major threat, and thus are less significant than climate related changes and pests (Figure No 9) For communities in Ancoraimes, information Risk perceptions on climate and market changes regarding crop-prices is obtained from two Chinchaya Karcapata Chojñapata Calahuancani Coani ANCORAIMES fundamental sources: (1) middle-men locally Hail 3,5 3,8 3,6 4,1 4,0 3,7 known as “rescatistas”, and (2) community members. As Shown (Figure No 8) for all Frost 3,9 4,0 3,6 4,3 3,9 3,9 agricultural products (crops, animals and Drought 3,5 4,0 3,7 4,1 4,3 3,8 transformed goods) middle-men are indeed the Pests 3,7 4,1 3,8 4,2 4,0 3,9 most import source of information. Lower prices on the market 3,7 4,1 3,7 4,1 4,0 3,9 1 = no risk 5 = highly risky Rescatistas are the most important source of price-related information

90,0 80,0 CONCLUSIONS 70,0 60,0 50,0 (1) There are not substantial differences on prices across the markets, (2) The need to sell at the 40,0 closest market (including their own community) is largely explained by higher transaction costs as 30,0 20,0 reflected in transportation and time needed to access more profitable yet distant markets (3) 10,0 Reliance on rescatistas for market related information shows the high degree of dependence on 0,0 middle-men and other intermediaries of the commercialization chain. Reaching markets with higher prices involves more than transportation costs. Transaction costs for Crops Crops Crops Crops Crops

Animals Animals Animals Animals Animals reaching distant markets includes the need to cover living expenses and the possibility to access

Products Products Products Products Products housing through community networks and relatives. Producers would also need to commercialize Transformed Transformed Transformed Transformed Transformed rescatistas NGO´s and radio community Organizations for greater quantities in order to reduce transportation and other transaction costs. training staff me mb e rs production and The fact that shifts in market prices are not perceived as a major source of risk does not reflect a commercialization secondary role for markets. It could reflect various other factors, including the fact that commercialization takes place as a result of the need to access cash income.