ECUADOR LOCAL BUSINESS DEVELOPMENT PROGRAM (PRODEL) Cooperative Agreement #518-A-00-08-00002-00
st Fiscal Year 2010 1 Quarter Progress Report
January 31, 2010
Submitted by: Submitted to: Sarah Mattingly, Hugo Ramos, USAID/Ecuador FIELD-Support LWA, AED Steve Beard, Program Manager, ACDI/VOCA
DISCLAIMER The authors views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. ACRONYM LIST
AACRI Río Intag Small Coffee Producer’s Association AAPPSME Agro-artisan Association of Producers of Dry Medicinal Plants of Ecuador AED Academy for Educational Development ANECAFÉ National Association of Coffee Exporters APECAEL Specialty Coffee Association of Loja APECAM Specialty Coffee Association of Small Growers of Marcabeli-Balsas APECAP Association of Ecological Producers of Palanda - Chinchipe APEOSAE Organic Farming Exporter’s Association APEOSAE Small Organic Farming Exporter’s Association APROCA Atacames Cacao Producers Association APROCAM Association of Cocoa Producers of Muisne APROCASH Shushufindi Cacao Producers Association ASOGUABO Association of Small Banana Producers of Guabo BCS Bio Control Systems BCS ÖKO Bio Control Systems Garantie C&D Conservation & Development CABP Certification of Agricultural Best Practices CAF Andean Development Corporation CEDEIN Indigenous Development Center CFN National Financial Corporation CONFITECA Ecuadorian Candy Company CORPEI The Ecuadorian Export and Investments Corporation DCA Development Credit Authority ECOCACAO Cacao Small Producer’s Association of Esmeraldas ECOLAC The Technical University of Loja Dairy Factory El SALINERITO The Salinas Salesian Family Foundation EPF Enterprise Partnership Fund ESCOFFEE Specialty Coffees of Ecuador ETIMOS Organization of Finance and Credit EUROAGRO The International Agricultural Production Fair FEDECADE National Federation of Cacao Growers of Ecuador FIELD-Support Financial Integration, Economic Leveraging, Broad Based Dissemination and Support FISPDICA Foundation of Social Initiative for the Development of the Atacames Canton FLO Fairtrade Labelling Organizations International FODEMI Microenterprise Development Fund FONCAFE National Coffee Fund FY Fiscal Year GOE Government of Ecuador GRUPPO SALINAS Salinas Salesian Family Foundation HOJA VERDE Trading Company Of Flowers And Cholcolate In Ecuador ICAM Italian Chocolate Company ICS Internal Control Systems INAEXPO Agricultural Export Industry INAGROFA Freund Arroyo Industrial Agriculture Company INCOP National Institute of Public Purchases in Ecuador INIAP Ecuadorian Institute for Agricultural Production IPM Integrated Pest Management IRS Internal Revenue Service ISO Quality Management System JUGO FACIL Leenrike Frozen Food KALLARI Chocolate Company in Ecuador LWA Leader with Associates MAGAP Ministry of Agriculture, Livestock & Fisheries MCPEC The Ministry for Coordination of the Production, Employment, and Competitiveness M&R Monitoring and Evaluation ME&R Monitoring, Evaluation and Reporting System MIPRO Ecuadorian Ministry of Production NAAT-E Association of Social Participation Nucleo Self of Technical Assistance of Esmeraldas PESTELI “Market Analysis”, Political, Economic, Social, technologic ecological, legislative, and industry PFI Potential for Inclusion PROCAP High Altitude Coffee Growers Association of Puyango PRODEL Ecuador Local Business Development Program PRONACA National Food Processing - Ecuador RA Rainforest Alliance RAS Sustainable Agriculture Standard RFN Rural Financial Network RTC Cooperative Transactional Network SALINERO Cacao Producer Company – Salinas Group SCAA The Specialty Coffee Association of America SME Small and Medium Enterprises SNV Netherlands Development Organization TRIARI S.A. The Coffee and Cocoa Industry Company UNOCACE Union of Cacao Farmer Organizations of Ecuador UROCAL Coastal Region Union of Farmer Organizations USAID United States Agency for International Development WOCCU World Council of Credit Unions
TABLE OF CONTENTS
PROGRAM OVERVIEW ...... 6
EXECUTIVE SUMMARY ...... 8
1. PROMOTE ANCHOR FIRM AND VALUE CHAIN COMPETITIVENESS ...... 9
2. STRENGTHEN VERTICAL AND HORIZONTAL LINKAGES ...... ERROR! BOOKMARK NOT DEFINED.1
3. FOSTER THE PROVISION OF FINANCIAL SERVICES ...... 27
4. EXPAND AND TRANSFER THE VALUE CHAIN MODEL ...... 32
5. PULLING IN LOCAL SERVICE PROVIDERS ...... 33
6. MONITORING AND EVALUATION ...... 34
7. SUBCONTRACTS AND GRANTS ...... 36
8. CERTIFICATION OF AGRICULTURAL BEST PRACTICES (CABP) ...... 37
9. MANAGEMENT ...... 44
ANNEX 1 – LESSONS LEARNED AND GUIDELINES FOR FUTURE ACTIVITIES FROM PRODEL PHASE I, FY 2009 ...... 45
ANNEX 2 – PRODEL FY 2009 ACHIEVEMENTS TO DECEMBER 31, 2009 ...... 48
ANNEX 3 – ANCHOR FIRM EVALUATION MATRIX ...... 49
ANNEX 4 – ANCHOR FIRM SELECTION SCORES FOR PHASE I FIRMS ...... 52
ANNEX 5 – SUBSECTOR EVALUATION MATRIX ...... 53
ANNEX 6 - PRODEL I ANCHOR FIRM EVALUATION MATRIX SUMMARIES ...... 54 ANNEX 7 - NEW ANCHOR FIRM EVALUATION MATRIX ...... 63 ANNEX 8 - ANALYSIS OF PROJECT EXPENSES BY GEOGRAPHICAL AREA ...... 66
LIST OF TABLES
Table 1: PRODEL Program Indicators ...... 7
Table 2: Selection of New Anchor Firms...... 12
Table 3: Value Chain Competitiveness Strengthening Activities During the 1st Quarter of FY 2010 ...... 16
Table 4: Strengthening Activities and Results for Value Chain Veritical & Horizontal Linkages ...... 23
Table 5: PRODEL II Key Indicator Achievements ...... 35
Table 6: Certification Activities for Anchor Firms in the First Quarter of FY 2010 ...... 39
Table 7: CABP Key Progress Indicators and Targets ...... 42
Table 8: Achievements to December 31, 2009 for PRODEL 1 Indicators ...... 48
LIST OF GRAPHS
Graph 1: Anchor Firm and Subsector Positioning Graph ...... 11
Graph 2: PRODEL Strategic Orientation Approach ……………………………………………………………………………………………. 21
Graph 3: PRODEL Strategic Orientation Tool ……………………………………………………………………………………………………. 22
Graph 4: Total loan amount percentage by source of financing………………………………………………………………………. 28
Graph 5: Percentage of the loan amount by financial institution……………………………………………………………………… 29 PROGRAM OVERVIEW
PRODEL, an associate award under USAID’s FIELD-Support Leader with Associates (LWA), aims to increase income and employment for families along the northern and southern border areas of Ecuador by supporting the expansion of private enterprises that will rapidly generate income and employment, and by strengthening local private producer groups and associations. Managed by the Academy for Educational Development (AED) and implemented by ACDI/VOCA in the field, PRODEL provides demand-driven assistance packages (technical assistance, targeted training and small grants) to stimulate and facilitate increased investments in strategically-selected agribusiness and non-agricultural anchor firms and their networks of suppliers and ancillary firms with a commitment to the growth of their businesses and the potential to generate significant increases in income and employment.
In support of the above objectives, PRODEL has created the Enterprise Partnership Fund to provide technical and co-financing assistance to lead or “anchor” firms, tailored to their specific needs. The assistance packages include a combination of market development, financing, accounting, management assistance and skills training depending on the specific challenges facing each anchor firm. PRODEL collaborates with banks, finance companies and microfinance institutions to facilitate the provision of additional credit to participating anchor firms and producer groups.
AED and ACDI/VOCA received a modification to the level of effort for PRODEL in September 2009 extending the program to September 30, 2012 and increasing the number of participating anchor firms by 34 firms.
The second phase of PRODEL is implemented through five key areas:
Promote Anchor Firm and Value Chain Competitiveness Upgrading Vertical and Horizontal Linkages Foster the Provision of Financial Services Expand and Transfer the Value Chain Model Pulling in Local Service Providers
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 6
In the new phase of the program, PRODEL will monitor its progress against the following targets.
Table 1: PRODEL Program Indicators Fiscal Fiscal Fiscal Life of INDICATOR Year Year Year Project 2010 2011 2012 Number of urban and rural anchor firms 10 12 12 34 Number of beneficiary families 4,000 4,800 4,800 13,600 Number of hectares of new and improved licit crops 2,800 3,400 3,400 9,600 Number of full time employees 2,000 2,400 2,400 6,800 Increase in family (household) income 25% 25% 25% 75% Increase in sales of producer groups to the anchor firm 25% 25% 25% 75% Number of technicians trained from NGOs and the GOE 80 100 120 300
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 7
EXECUTIVE SUMMARY This report covers activities undertaken and results achieved during the first quarter of the Fiscal Year (FY) 2010 (October 1–December 31, 2009). The indicators for PRODEL goals and objectives are being reported on a cumulative annual basis. PRODEL’s main achievements during this quarter include the following:
The first phase of PRODEL ended September 30, 2009 and the team met or exceeded all but the anchor firm sales target that will be reported as of the end of the 2nd quarter of FY 2010. The Certification of Agricultural Best Practices component of PRODEL was completed as of December 31, 2009 and met or exceeded all of its established targets. To close out the first phase of the program, the PRODEL team hosted an event in the Quito Marriott to disseminate achievements. Attended by an estimated total of 280 public and private sector representatives, the event featured stands from the 20 first phase anchor firms and testimonials from five of the program beneficiaries. The event attracted media coverage and the PRODEL team distributed a book entitled “Supporting Efforts and Harvesting Development” to attendees. A video highlighting PRODEL’s work during the course of the past 20 months was presented and attendees were invited to hors d’oeuvres made with ingredients from the six product sectors chosen for the first phase of the program. The second phase of PRODEL began during this past quarter and the current program contract runs through September 30, 2012. The PRODEL team conducted Rapid Value Chain Assessments of PRODEL I sub- sectors to include, coffee, cacao, dairy products, medicinal plants and aromatic herbs, processed fruits, and grains. The assessment suggested that the coffee, cacao, processed fruits, and grains subsectors should be retained for the second phase of the program. The PRODEL team profiled anchor firms considered for participation in the second phase of the program. Ten firms were presented to USAID: three in cacao, three in coffee, two in fruits, one in grains, and one in fish & seafood. AED in coordination with the PRODEL team in Ecuador conducted Rapid End Market Assessments of PRODEL I sub-sectors to include, coffee, cacao, dairy products, medicinal plants and aromatic herbs, processed fruits and grains to USAID.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 8
1. PROMOTE ANCHOR FIRM AND VALUE CHAIN COMPETITIVENESS The prodel team launched a new phase of the program this past quarter and within the promotion of the anchor firm value chain competitiveness component began by selecting subsectors and anchor firms. This component describes the activities to maximize the potential for marketing opportunities for PRODEL anchor firms and their linked producers.
1.1 Achievements during the Quarter
During the 1st quarter of FY 2010, the PRODEL team developed new and improved quantitative measurement tools to improve the process for the selection of subsectors and anchor firms for the second phase of the program. These tools will not only serve the program by providing quantitative measurements and parameters for comparison in the process to select potential subsectors and anchor firms on behalf of the the PRODEL team, but they will also be useful for regularly measuring PRODEL and anchor firm program progress.
The goal for the number of anchor firms and their producer groups for the second phase of PRODEL is 34 for the period ending September 30, 2012. The goal for this past quarter was to select a minimum of 10 anchor firms as of December 31, 2009 to begin program implementation.
A. Anchor Firm Selection
To select anchor firms for participation in the program, the team uses an evaluation matrix that measures the level of market development, the firm’s management capacity, the degree of small-scale producer inclusiveness, and access to support services. The score obtained through the matrix is used in conjunction with other tools developed for PRODEL that include positioning and strategic orientation tools to select the anchor firms for the program. Using this matrix, the PRODEL team evaluated each of the PRODEL I firms in an effort to assess their status after their participation in Phase I of PRODEL.
In phase II the PRODEL team agreed to move forward in its partnership with five of the PRODEL I anchor firms. To identify these, the team undertook a thorough assessment of these firms in terms of their: (1) achievement of results under PRODEL I; (2) capacity and leadership to expand outreach to new producer and value chain groups; (3) The anchor firm business growth capacity; (4) Market development capacity. The latest version of the anchor firm evaluation matrix is found in Annex 3. As a result of higher qualification scores through the evaluation matrix and other factors taken into account described in table 2, the following anchor firms from the first phase of the program were selected for participation in
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 9 the second phase of PRODEL: FAPECAFES, Jugo Facil, Gruppo Salinas, Cereales Andinos and COFINA (see Annex 6).
The matrix was also used to evaluate potential new anchor firms, five of which have been pre-selected and are as follows: Cafecom, San Carlos, Deprodemar, Tropicano, and Café Minerva (see Annex 7).
The firms were ranked in the following positioning graph that forms the basis for selecting the five anchor firms from Phase I of PRODEL for inclusion in the second phase.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 10
Graph 1: Anchor Firm and Subsector Positioning Graph
Anchor Firm and Subsector Evaluation
3.50 Consider anchor firms >1.5 and higher PFI Select anchor firms according to PFI
II COFINA I INAGROFA C ANDINOS GRUPPO SALINAS AAPROCASH SKS AROMA AMAZÓNICO APROCA AACRI ASOGUABOCAFÉ VÉLEZ FAPECAFES ESCOFFEE GALLETTI JUGO FÁCIL
2.50 1.00 2.00 3.00 4.00
AAPPSME Subsector Evaluation Subsector
ECOLAC MONDEL III IV Reject even with high PFI Consider anchor firms >1.5 and higher PFI
1.50
Anchor Firm Evaluation
ESCOFFEE GRUPPO SALINAS FAPECAFES ASOGUABO CAFÉ VÉLEZ SKS MONDEL APROCA COFINA AACRI ECOLAC AAPROCASH CEREALES ANDINOS INAGROFA AROMA AMAZÓNICO SOL DE ORIENTE AAPPSME JUGO FÁCIL GALLETTI
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 11
From this graph 1, the following PRODEL I firms, located in quadrant I, displayed the greatest Potential for Inclusion (PFI) and therefore were selected for the second phase of the program: Gruppo Salinas, FAPECAFES, Jugo Fácil, COFINA, and Cereales Andinos. Positioning in the graph determines the priorities for selection, for example, a firm with a high PFI within quadrant II could be considered as a potential anchor firm. This is not the case with firms in quadrants III and IV, due to the fact that they belong to subsectors with less competitive potential. The five firms selected for phase II occur in quadrant I of the graph where both the anchor firm and subsector interaction is optimal. This quadrant indicates high levels of competitiveness on behalf of the selected anchor firms and points to a greater potential for PRODEL project intervention sustainability.
The PRODEL team has identified groups of producers and potential anchor firms within the subsectors found to have the most potential for the program to include increased competitiveness and potential to support large numbers of producers. The table below lists the firms and producer groups identified so far that are currently undergoing the evaluation and selection process. These firms and producer groups are located within the targeted northern and southern border regions of Ecuador as well as falling into the subsector categories selected for the second phase of PRODEL.
Table 2: Selection of New Anchor Firms
ZONE FIRM SUBSECTOR
Amazon San Carlos Cacao Amazon Caoni Cacao Amazon República Del Cacao Cacao Amazon HOJA VERDE Cacao Amazon CONFITECA Cacao Amazon KALLARI Cacao Amazon Cocoamarket Cacao Amazon Asociación Fortaleza del Valle Cacao National Federation of Cacao Growers of Ecuador - Amazon FEDECADE Cacao Amazon OSELLA S.A. Cacao Amazon Triairi S.A. Cacao Union of Cacao Farmer Organizations of Ecuador Amazon "UNOCACE" Cacao Northern Phytotech Plant material Northern LA VERDE Grains Northern GRAMOLINO Grains
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 12 Northern RANDIMPACK Grains Northern SUMAKLIFE Grains Northern COPROVICH/ERPE Grains Northern INAEXPO Processed vegetables Northern IncaFood S.A Grains Northern Indigenous Development Center CEDEIN Processed vegetables Northern Expoarom Cia. Ltda. Processed vegetables Northern Jambi Kiwa Processed vegetables Northern Cultivos Orgánicos del Ecuador S.A. Processed vegetables Northern Euroagro S.A. Processed vegetables Northern Grupo Agromilenio, Equibusiness Cía Ltda. Processed vegetables Northern FEPP CAMARI Grains Southern CAFECOM Coffee Southern CAFÉ MINERVA Coffee Southern FINO DE AROMA Coffee Cacao Southern EL CAFE Coffee Southern GARDELA Coffee Southern ORGANIC COFFEE Coffee Southern BONCAFE Coffee Southern FRYDECO Cacao Southern FEDECADE Cacao Southern UROCAL Cacao Southern PRONACA Grains Southern WAYNE Grains Southern KAVE CAFÉ ECUATORIANA S.A. Coffee Southern Indigenous Development Center CEDEIN. Coffee Southern Frutos Del Pacífico Sur S.A. Processed fruits Southern FRUTPASOUTH S.A. Processed fruits Southern CORPAP Grains Southern FEPROCAZH Cacao Esmeraldas DEPRODEMAR Fish & seafood Esmeraldas TROPICANO Processed fruits Esmeraldas CHOCONO Cacao Esmeraldas ECUACOCOA Cacao Esmeraldas TULICORP Cacao Esmeraldas CHOCOLATECA Cacao Esmeraldas FFMD Cacao Esmeraldas PALFRUIT Processed fruits Esmeraldas EMPCOPAC/UNIVERSAL SEA FOOD Fish & seafood Esmeraldas Naturalmente Rico Frozen Tropic Processed fruits Esmeraldas Facundo Processed fruits Esmeraldas Profruit Processed fruits
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 13 Esmeraldas AGROFACILE Processed fruits Esmeraldas Guayas Processed fruits Esmeraldas Sunny Processed fruits Esmeraldas Exporganic S.A. Processed fruits Esmeraldas FLP Latinoamerican Perishables del Ecuador S.A. Processed fruits Esmeraldas Agricola Oficial Agroficial S.A. Processed fruits Esmeraldas Amerifoods S.A. Processed fruits Esmeraldas Compañía Agrícola Industrial Ecuaplantation S.A. Processed fruits Esmeraldas Romero Kotre Agrícola Ganadera Processed fruits Esmeraldas UROCAL - Regional Union of Farmer Organizations of the Coast Cacao Esmeraldas Solipesca Fish and seafood Esmeraldas INPROMAR Fish and seafood
B. Anchor Firm Business Planning
To increase the relevance of business planning activities for the anchor firms and ensure appropriateness for the firms’ varying levels of sophistication, the PRODEL team worked to improve and adapt its planning and analysis initiatives during this past quarter. The PRODEL business planning process serves to identify the various critical success factors to achieve sustainable competitive advantages for participating anchor firms and producer groups. The methodology used includes workshops conducted with anchor firm and producer stakeholders during which potential program capacity interventions are determined. Limitations to greater value chain competitiveness are identified through a participatory process during these workshops. In addition, ways to improve market demand through increased raw material quality and quantity levels are considered in the discussion. From the limitations and opportunities analyzed, activities are defined to be included in an investment plan that forms the basis for the Enterprise Partnership Fund for each participating value chain. Software has been developed to facilitate the sustainability of the business planning process.
C. Subsector Evaluations
Based on the strategic subsectors defined by the Ecuadorian Ministry for the Coordination of Productivity, Employment and Competitiveness (MCPEC) and the competitiveness of each potential subsector within the provinces located in the PRODEL area of influence, the
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 14 PRODEL team developed a methodology that evaluates subsector competitive potential with the goal of focusing program resources on enhancing the competitiveness of those products that demonstrate the greatest potential for achieving PRODEL objectives. The PRODEL technical team assessed the subsectors targeted in Phase I. In addition, a team of consultants conducted assessments of potential new subsectors: processed vegetables, bio- fuels, tourism, handicrafts, pork meat production, fish & seafood, agro-forestry products, and processed fruits. Conclusions drawn from the assessments of the existing PRODEL phase I subsectors suggest cacao, coffee, processed fruits and grains should be included in Phase II. New subsector assessments are to be completed by next quarter.
The methodology used for PRODEL subsector evaluation included the following elements:
Primary and secondary information gathering End market analysis Quantitative subsector evaluation (subsector evaluation matrix) Value chain analysis Conclusions and recommendations
To support the new subsector evaluation and analysis process, ACDI/VOCA value chain specialist Hannah Schiff traveled to Ecuador to provide guidance to the assessment team on the value chain data collection and analysis.
The PRODEL team developed the subsector evaluation matrix and provided guidance to the consultants on its use to ensure an accurate evaluation of subsector competitiveness. The subsector evaluation matrix covers items related to the program context, the competitive environment, and potential impact for small producers targeted by PRODEL. It includes a PESTELI market analysis, that takes political, economic, social, technological, ecological, legislative, and industry factors into consideration. A portion of the supporting information used to assess these criteria was extracted from secondary sources, and additional primary information was collected through surveys and focus groups conducted by the consultants and PRODEL technical personnel directly with the targeted producers representing each subsector. The latest version of the subsector evaluation matrix is presented in Annex 5.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 15 Below is a summary of PRODEL I anchor firm and producer group activities during the period from October-December 2009.
Table 3: Value Chain Competitivesness Strengthening Activities during the Quarter
COMPANY STRENGTHENING ACTIVITIES AND RESULTS
Café Galletti - Café Galletti delivered 20,000 coffee bags to El Colmenar organization for sale under the El Colmenar label creating a stronger relationship between the anchor firm its producers - BCS organically certified 92 members of the El Colmenar group through the PRODEL CABP project Mondel - Mondel redefined its business focus to concentrate on those products that provide greater profit margins and possess a greater level of acceptance in the marketplace. They also eliminated the catering component of their business due to comparatively low profit yields - Mondel redesigned the product portfolio according to product margin contributions - Mondel established new credit and collection policies that have reduced the period for accounts receivable from 135 to 90 days - Defined a company quality policy as part of the ISO 9001-2008 Quality Management System - Mondel implemented a modified incentive program to motivate sales department personnel. - Obtained a US$63,000 loan from CFN for the purchase of a delivery truck - Closed the catering business unit in order to improve efficiency - Conducted publicity and product tasting campaigns - Conducted food handling training for plant staff Gruppo Salinas - Gruppo Salinas sold 149.5 MT of domestic organic and FLO cacao, for a total of US$471,614 - Due to negotiations with ICAM (Italy) that resulted from the PRODEL supported business tour, the firm met and surpassed sales projections - Gruppo Salinas began to pay back the loan from ETIMOS. By 2010, the company will have paid the capital plus interest that served as working capital to fulfill the agreement with ICAM - Currently negotiating with customers in Chile and the U.S. to sell chocolate and cocoa paste AACRI Rio Intag - AACRI Rio Intag began implementing the market study for the 2009- 2012 period Cereales Andinos - Cereles Andinos earned contracts for government food programs - Participated in small producer inclusive fairs organized by INCOP Aroma Amazónico - Aroma Amazónico hired Ricardo Cordero as manager. Mr. Cordero completed the PRODEL sponsored course at the Monterrey Institute
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 16
COMPANY STRENGTHENING ACTIVITIES AND RESULTS
of Technology COFINA - COFINA progressed with the construction of the semi-processed cacao product plant AAPROCASH - AAPROCASH sold CCN-51 cacao to Rainforest Alliance customers that had been separated from the National Arriba cacao variety. This is an example of best cacao post-harvest practices AAPPSME - AAPPSME introduced sales wagons to promote products - Conducted an Horchata Lojana advertising campaign - Obtained a health certificate for the horchata (herbs) with honey product ESCOFFEE - ESCOFFEE achieved organic certification with the Control Union Company - Initiated contacts necessary for Fair Trade Certification - ESCOFFEE is currently negotiating a loan from CORPEI for US$1 million to build and equip its Coffee Research Center which will support product development, quality assurance, and commercialization efforts FAPECAFES - FAPECAFES continued to improve the producer database and in the process of uploading the database to the website - implemented requirements to access fair trade and organic certification to include the verification of microlot traceability to increase access to export markets
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 17 D. Selected Activities
Value Chain Mapping
The PRODEL team worked with an intern from the Central University of Ecuador, Andrea Villareal, to prepare maps for PRODEL I anchor firms and analyze the value chains. Villareal presented the value chain maps according to subsectors using Autocad. The value chains are superimposed as transparent images, illustrating product flow, the stakeholders, channels of distribution, as well as a comparison of PRODEL participating value chains. The maps also include information on pricing, production, acreage, and volumes.
Contest for the Best Ecuadorian Coffee, Golden Cup 2009
PRODEL co-hosted the Golden Cup competition on October 1-23 at the Loja Technical University laboratory. Participants included producers, exporters, importers, domestic and international roasters, and nationally and internationally renowned tasters. The event tested 35 samples, 18 of which scored 80 points or higher. International specialty coffee taste-testing judges selected ten finalists. First prize was awared to the Olmedo Canton of specialty coffee producers, a
group linked to the ESCOFFEE anchor firm for ESCOFFEE General Manager, Miguel Rendon and Olmedo Canton Coffee Producer PRODEL. Association Manager, Angelino Abad win first place at the Golden Cup 2009 Specialty Coffee award ceremony.
In an effort to take advantage of the large number of participating specialty coffee producers from throughout the coffee growing regions of Ecuador in attendance at the Golden Cup competition, PRODEL organized simultaneous events on topics related to coffee productivity, quality, harvest, post-harvest, and commercialization. Participants agreed to hold the next Golden Cup competition in the island province of Galapagos.
Anchor firms and PRODEL representatives engaged in additional events and activities during this past quarter to include the following:
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 18 Coordination meetings with CORPEI regarding participation in the 2010 annual SCAA conference in Anaheim, California Coordination meetings with MCPEC to explore options for leveraged funds to benefit participating PRODEL anchor firms and producer groups. A total of seven profiles were submitted for consideration. MCPEC is interested in providing support in the areas of import substitution, product improvements, development of innovations, export promotion and small producer linkages Coordination meetings with representatives from USAID, Universitas Equatorialis, and the PRODEL program in order to achieve leverage with public sector institutions to provide continuity to the process of anchor firm strengthening Participation in the “Business Opportunities with Colombia” seminar organized by the Quito Chamber of Commerce and CORPEI Participation in the Export Strategy Seminar for SMEs focusing on the European Union market PRODEL representatives served as presenters in the seminar on “Strengthening Competitiveness through Agricultural Extension” sponsored by Sun Mountain in Quito
1.2 Challenges Encountered and Alternatives Employed
There is a significant lack of information available to investigate competitive subsectors for the border regions of Ecuador. Ecuadorian ministries such as MCPEC are currently implementing studies to determine the most competitive subsectors for the country but this information will only become available in the future. As a result, the PRODEL team has relied on primary research methods to determine the most viable subsectors for the program. The InterAmerican Bank has conducted extensive investigations of subsectors in Ecuador to include a study in Loja that determined that coffee, tourism, and knowledge management were the three most competitive sectors in this region of Ecuador; however, there is no real articulation among these various studies with cooperating agency actors that are implementing projects in the field. As a result, some studies have indicated that specific subsectors that have been found to lack competitiveness by the PRODEL team, have been targeted for development by the Ecuadorian government and others. The PRODEL team must investigate a number of anchor firm and producer groups in an effort to select value chains that meet the criteria for the program. Many of these anchor firms and producer groups are difficult to identify for the program due to a lack of organizational skills and limited business management experience. The
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 19 PRODEL team is working to forge relationships between anchor firms and producer groups in an environment where farmers have had little direct contact with buyers and are not organized to the level where they are able to provide consistent quality and volumes of product for the market. PRODEL seeks to link anchor firms to producers that are willing to adopt productivity and quality standards valued by the marketplace that result in increased competitiveness and greater income levels for program participants.
1.3 Activities Planned for Next Quarter
Organize workshops for the selected anchor firms that focus on program orientation, strategic analysis, and business and financial planning. These workshops will form the basis for formulating an Enterprise Partnership Fund investment plan primarily targeted to producer groups linked to participating anchor firms. Continue to research and select new anchor firms. The goal is to select five additional anchor firms to the 10 previously selected, by March 31, 2010. Coordinate with CORPEI and other public and private sector entities to select new firms, negotiate co-financing agreements, and foster participation in local and international trade fairs. Continue negotiations for co-financing of PRODEL activities with MCPEC. Provide anchor firms with strategic business management, key performance indicator, and competitiveness feedback. Business planning workshops will be conducted with eight of the 10 anchor firms selected for the second phase of PRODEL to date.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 20 2. STRENGTHEN VERTICAL AND HORIZONTAL LINKAGES
2.1 Achievements During the Quarter
A. Strategic Orientation
The PRODEL team has developed quantitative methodologies for value chain-focused strategic planning and orientation based on the premise that what you cannot measure cannot be improved. As a result, the team has developed quantitative assessment approaches for value chain strategic orientation. The team has named this approach Value added, Inclusion and Productivity (VIP). Taken from the anchor firm evaluation matrix found in Annex 3, a score for each of the axes is plotted on a graph similar to the one immediately below, allowing for periodic measurement throughout the PRODEL implementation period.
The green (inner) diamond in the graph below represents the current state of the relationship among anchor firms and other stakeholders in the value chain, and the red (outer) diamond is the target that the PRODEL team seeks to achieve. This provides a visual
Graph 2: PRODEL Strategic Orientation Approach PRODEL Strategic orientation
Current situation Desired situation Market VIP 3.5 Transformation Value added3 Differentiation 2.5
2
1.5
1
0.5
Support Services Inclusive0 Anchor Firms
Productive Producers
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 21 representation of the gap between the current and desired anchor firm situation helping to define strategic planning objectives. The quantitative evaluation for each one of the axes in this graph to include Market, Support Services, Anchor Firms and Producers represents a systemic approach to evaluation of the relation between the anchor firm and additional value chain representatives. Viewing the graph from the bottom to the horizontal axis, productivity represents the principal element that ensures economic sustainability for development of producers that we are considering for the program. The red line in the graph represents the quantitative targeted interaction between support services and anchor firms resulting in PRODEL activities that generate greater numbers of participating producers and higher productivity levels in the value chains. It is here that the opportunity for firms to develop vertical linkages and achieve differentiation through social responsibility is incorporated. From the horizontal axes of support services and anchor firms towards the top of the graph represented by the market, activities are related to product differentiation, transformation and value added strategies.
Graph 3: PRODEL Strategic Orientation Tool PRODEL Strategic orientation
Current situation Desired situation Market 3.5
3
2.5
2
1.5
1
0.5
Support Services 0 Anchor Firms
Producers
The various strategic planning stages for the value chain projects implemented through the PRODEL EPF will be articulated with this VIP approach that takes the following into consideration: program strategies, tactics, goals, objectives, and overall tasks. This approach
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 22 promotes a win-win situation for all stakeholders by promoting exports, improving productivity, fostering producer/anchor firm linkages and adding value to products, and future recognition will be awarded to the value chains that make progress as VIP companies.
In the PRODEL Strategic Orientation graph 3 above the vertical and horizontal parallel lines illustrate the gap between the current and the desired program impact. For example, the blue (inner) diamond defines the current situation and the red (outer) diamond in the graph represents the desired situation. The intersection of the lines defines the interaction between one axis and another, illustrated by the yellow triangles in the graph. Interactions occur between firm and market, firm and producers, support services and producers, and support services and the market. This tool has helped to define overall strategic objectives going forward for PRODEL II. This tool is aligned with the VIP approach described in graph 2 above where strategic objectives are met through the implementation of PRODEL activities undertaken through this approach. The achievement of the objectives in this strategic orientation tool will work to reduce the gap between the current situation depicted by the green (inner) and the red (outer) diamonds in the VIP approach. These objectives will help to improve relationships among the various actors in the value.
B. Strengthening Activities to Improve Producer Linkages within the Value Chain
During this past quarter, the PRODEL team has made significant progress in strengthening the producer skills, product quality, linkages with firms, and competitiveness. The table below lists capacity-building activities and their subsequent results of anchor firms from the first phase of PRODEL. This table will be completed for the anchor firms from the second phase of the program starting with the 2nd quarter FY 2010 report.
Table 4: Strengthening Activities and Results for Value Chain Vertical and Horizontal Linkages
Company Strengthening Activities and Results
GRUPPO SALINAS - Coordinated a new BCS certification inspection for FISPDICA and NAAT-E - Gruppo Salinas provided technical assistance to FISPDICA - Gruppo Salinas held meetings with FISPDICA to encourage organizational improvements AACRI RIO INTAG - AACRI Rio Intag initiated the Rainforest Alliance certification process, the issuance of which is still pending - Included 70.48 hectares of coffee in the certification process
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 23
Company Strengthening Activities and Results
- Trained four certification technicians MONDEL - Mondel increased the intensity of workshops and farmer field schools - PRODEL funded trainings that improved milk production, both in quantity and quality - Farmers are applying concepts learned in PRODEL trainings - Implemented quality control to ensure first-rate raw material - Held two meetings with the mayor of Mira, Fausto Ruiz, who confirmed his offer to help reinforce the goat milk project among participating communities - Mondel distributed 50 filters for milk containers provided through PRODEL to the Chauchin, Gruta de Fatima, and Frailejon communities. This equipment will guarantee high milk quality - The price of milk paid by Mondel to small farmers has risen to US$0.35, as compared to the US$0.25 per liter minimum established by Ecuadorian law. Payment is based on quality, depending on best practices followed in the communities - The Chauchin community milk producers received a Lactoscam, an essential piece of laboratory equipment for measuring milk quality parameters - Mondel continued the process to formally organize small dairy farmer associations - The Aso-Mira Association and the El Abejon community connected to the Mondel anchor firm purchased 90 additional breeding stock animals with a loan from the National Development Bank in order to specialize in goat milk production CAFÉ GALLETTI - In the areas of San Antonio de Las Aradas and El Colmenar in the province of Loja, the PRODEL CABP team supported the implementation of the certification audit recommendations which directly benefited 88 farmers with 229.7 hectares of organic coffee - Café Galletti conducted quality control training workshops AROMA AMAZÓNICO - Aroma Amazónico conducted 500 internal certification inspections as a result of CABP project intervention, which were presented to BCS - Aroma Amazónico held workshops for internal inspectors, both for organic and Rainforest Alliance certification SOL DE ORIENTE - Sol de Oriente continued to deliver plastic for solar dryers and robusta coffee seedlings to farmers COFINA - COFINA continued providing technical assistance to farmers for storage and nurseries - COFINA investigated and established connections with producer associations for the purchase of cacao in the Loreto Canton in Orellana Province - COFINA conducted a total of 536 internal certification inspections facilitated by CABP - COFINA held workshops for internal Rainforest Alliance inspectors coordinated through the CABP project AAPROCASH - AAPROCASH incorporated 246 families on 647 hectares, 321 of which achieved organic certification - AAPROCASH held workshops for internal auditors for organic and Rainforest Alliance certification as promoted through CABP ECOLAC - ECOLAC delivered fertilizers to dairy farmers to improve feed production - ECOLAC held training workshops for a group of 40 dairy farmers ESCOFFEE - ESCOFFEE began distributing coffee seedlings in the Chaguarpamba and Olmedo Cantons of Loja Province - ESCOFFEE and its linked coffee growers association, Olmedo won first prize in the
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 24
Company Strengthening Activities and Results
2009 Golden Cup Specialty Coffee contest - ESCOFFEE coordinated technical assistance for the implementation of the internal control system as a basis for its certification in the Olmedo Canton - ESCOFFEE held a formal training for Rainforest Alliance and organic certification inspectors FAPECAFES - FAPECAFES organized four workshops on efficient micro-organism management for pest and disease control - FAPECAFES participated in the CABP regional workshop on Integrated Pest Management - FAPECAFES organized two events on quality management for warehouse staff and member organizations - FAPECAFES organized accounting and administrative training for technical teams, FAPECAFES leaders, and grassroots organizations ASOGUABO - ASOGUABO continued with producer training events in order to improve productivity, especially for the Orito (miniature banana) crop conversion farm
C. Horizontal Linkages
During the quarter, PRODEL anchor firms established connections to develop horizontal linkages along value chains. Some of the initiatives are described below:
Mondel signed a cooperative agreement with the Salinas Salesian Family Foundation and Gruppo Salinas to process goat cheese. The Mondel/Gruppo Salinas horizontal linkage was forged during the Monterrey Institute of Technology strategic business management training funded through PRODEL. This six month course allowed management from the two companies the opportunity to learn of complementary strengths and assisted in the process to gain a level of trust and mutual understanding that has resulted in the signing of this agreement between the two firms. In an effort to increase exports and improve the presentation of Mondel primary cheese products to include blue, brie, monte caprino, and its Christmas products, Mondel contacted the Ecuatoriana de Chocolates anchor firm to explore options to share packaging suppliers. The AACRI Rio Intag Association carried out research trials for its pest and disease control laboratory to support its efforts to negotiate sales agreements with FAPECAFES, ASOGUABO, APROCA, and Aroma Amazónico. The technology developed through the biocatalyzation pest and disease control laboratory in ACCRI
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 25 Rio Intag will improve productivity levels for PRODEL anchor firms and others in an effort to increase competitiveness among Ecuadorian agricultural producers.
2.2 Challenges Encountered and Alternatives Employed
The majority of agricultural producers do not belong to formal organizations and therefore lack access to markets that rely on consistent quality and volume standards. PRODEL seeks to promote the strengthening of existing agriculture based associations to meet this challenge.
2.3 Activities Planned for Next Quarter
The PRODEL technical team will invite targeted producers and anchor firm representatives to participate in focus groups and workshops to investigate potential horizontal and vertical linkages between value chain actors. Events to train trainers through the farmer field school methodology in areas of technical assistance promoted by PRODEL will be conducted during this next quarter. Activities related to productivity improvements such as clonal nurseries, select vegetable materials, and best practices for pest and disease control for producer groups and their linked anchor firms will be implemented during the second quarter of FY 2010. Vertical and horizontal linkage activities will be funded through the EPF for anchor firms and their producers that participated in the first phase of PRODEL.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 26 3. FOSTER THE PROVISION OF FINANCIAL SERVICES
3.1 Achievements during the Quarter
During the 1st quarter of FY 2010, the PRODEL financial services team continued to facilitate Phase I anchor firms and producer group access to credit and financing alternatives. Additionally, the PRODEL financial specialist defined the main strategies and specific activities to be employed during the second phase of the program. The financial services team supported Phase I anchor firms during the 1st quarter of FY 2010 through the following activities:
The financial services team calculated indicators using anchor firm monthly financial statements (balance sheet and income statements). Based on this analysis, the financial services specialist made recommendations to firms on how to improve their indicators and accounting systems. This activity helps to strengthen anchor firm administrative and financial capacities to improve their business competitiveness and their purchasing power from PRODEL participating small producers. These financial sector capacity building activities also improve anchor firm and producer access to financial products and services.
Ensured the anchor firms were included on the Ecuadorian Internal Revenue Service white list, in an effort to avoid any tax-related problems. The white list reflects the current fiscal condition of Ecuadorian companies and keeps track of tax payments to the government. If a firm is absent from this list, the financial services team immediately notifies the firm. Fewer and fewer firms are included on this list as a result of this follow up by the PRODEL financial specialist. Due to requests from the PRODEL Ecuadorian counterpart, Plan Ecuador, the PRODEL financial specialist has made an effort to monitor this list on a monthy basis.
Conducted rapid financial assessments of all the PRODEL I anchor firms for the rapid value chain assessments of PRODEL I value chains sent to USAID on December 31, 2009. The PRODEL team found that PRODEL I anchor firms had improved their financial management practices and increasingly based their business decision making processes on reliable financial information that is now generated as a result of PRODEL intervention.
As of December 31, 2009, the financing obtained by PRODEL anchor firms totaled US$ 4,275,390, a 1.5% increase over the comparable figure for September 2009. Of
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 27 the various sources, the National Financial Corporation, Root Capital, Amaznor, and Oikocredit provided the bulk of the financing. The PRODEL team coordinated financial sector contacts for anchor firms, worked to improve internal anchor firm financial department processes, and facilitated the construction of busineses plans that assisted in obtaining financing for anchor firms. The graph below illustrates the percentage of total funds provided by each source from March 2008 to December 2009. Graph 4: Total loan amount percentage by source of financing
The support provided to micro-entrepreneurs during the period from October-December 2009 focused on strengthening relationships with financial institutions, particularly the National Development Bank (Banco Nacional de Fomento). This bank has expressed interest in considering PRODEL participating producers as loan recipients due to the value chain connections forged during the period of program implementation and has plans to implement credit programs that facilitate credit access to small farmers with an emphasis on risk management and the value chain approach. In addition, PRODEL coordinated direct contacts between participating producers and credit officials from the National Development Bank for loan consideration.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 28 Of the 7,123 producers participating in the first phase of PRODEL, 1,865 have received loans since March 2008. The producers received a total of US$8,417,818, or an average of US$4,513 per operation. The mode for these loans was US$5,000, the median US$3,000, and the standard deviation US$6,217.
A total of 70 financial institutions, including banks, savings and loan cooperatives, and financial companies provided the 1,865 loans and 41 of these financial institutions are regulated by the Ecuadorian Bank and Insurance Superintendent. The remaining 29 are non-regulated. Regulated financial institutions provided the majority of the loan capital (US$7,524,529). The following graph illustrates the percentage provided by each institution. The most prominent was the National Development Bank, which supplied 54% of all funds, Banco Pichincha through CREDIFE accounted for 11%, and Banco de Guayaquil, and Jardin Azuayo Credit and Loan Cooperative both supplied 4%. In comparison, financial institutions not regulated by the Ecuadorian Bank and Insurance Superintendent provided US$893,289 in micro-credit. This indicates a clear preference to work with regulated credit agencies in the future through PRODEL.
Graph 5: Percentage of the loan amount by financial institution
Percentage of the loan amount by financial institution
11%
BCO NACIONAL DE FOMENTO PICHINCHA-CREDIFE 13% BCO DE GUAYAQUIL COOP. JARDIN AZUAYO
48% COOP. CODESARROLLO 1% COOPMEGO 1% COOP. TULCÁN 3% CFN 3% BCO DE LOJA 3% OTRAS IFIS REGULADAS IFIS NO REGULADAS 4% 4%
10%
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 29
During the past quarter, the PRODEL financial team established the guidelines for the Financial Services Component for the second phase of the program. Additionally, the financial team initiated efforts to increase the presence of financial institutions in PRODEL areas of influence through increased banking technology such as handheld banking devices and automatic tellers, the establishment of neighborhood banks and more credit officials, as well as to improve access to financial services for the different stakeholders along the value chain with an emphasis on agricultural producers. The PRODEL financial team engaged in the following activities for the period October – December 2009:
Continued dialogue with the National Development Bank regarding the implementation of a pilot value chain financing program, which will be based on ACDI/VOCA methodology. This pilot program is scheduled to commence in March 2010 and once tested, implemented in additional Ecuadorian financial institutions.
Conducted an exploratory meeting with CREDIFE of Banco Pichincha, a USAID Development Credit Authority (DCA) authorized financial institution. CREDIFE representatives expressed interest in implementing a pilot program to test the methodology.
Developed a Value Chain-Focused Credit Manual for Ecuadorian financial institutions, which will serve as the basis for Phase II financial sector pilot programs.
Conducted a meeting with the Rural Financial Network (RFN) that focused on three objectives: promote the program and the value chain finance methodologies; identify activities that could be implemented collaboratively, such as mapping the organizations that offer financial services in border provinces; and establish a database of international organizations that provide financing or capital to micro- enterprise and agricultural sectors. As a result of this meeting, the PRODEL team is exploring the possibility of signing a cooperative agreement with the RFN. Due to the fact that the RFN represents the microfinance sector in Ecuador, this agreement provides the program with a greater level of influence at the macro and meso-levels.
The PRODEL Financial Services Specialist contacted WOCCU’s1 Ecuadorian affiliate, Cooperative Transactional Network (RTC in Spanish) who expressed interest in
1 World Council of Credit Unions
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 30 collaborating with the PRODEL program in promoting financial services, such as savings, transfers, and the use of technology.
SNV is interested to implement joint activities with PRODEL in the area of value chain finance. The PRODEL team met with SNV members and presented the financial literacy program that the PRODEL team plans to initiate in its second phase. SNV has expressed interest in acting as a partner to create effective financial literacy programs in Ecuador.
PRODEL technical staff members participated in the National Finance Corporation’s (CFN), “Financing Alternatives in Times of Crisis” seminar that provided an opportunity to interact with CFN officials and strengthen the relationships established during Phase I. CFN, who offers a credit guarantee fund targeted to small and micro-enterprises established in conjunction with the Andean Development Corporation, could be a key player within the agriculture finance sector during the second phase of PRODEL.
3.2 Challenges Encountered and Alternatives Employed
The minimal access on behalf of agricultural sector producers to financial services constitutes the main challenge faced by the financial services component of PRODEL during this past quarter and throughout the program to date. This lack of access for producers is due to failed attempts in the past to provide credit in Ecuador increasing risks and costs, in addition to the lack of programs to educate farmers in sustainable credit practices. The PRODEL team has arranged several meetings this past quarter with financial sector representatives from The Transactional Network Cooperative (RTC), the National Development Bank (BNF), the National Financial Corporation (CFN) and the National Financial Network (RFR) in an effort to raise the level of interest in Ecuador to loan to agriculture producers.
3.3 Activities Planned for Next Quarter Organize a Seminar on Value Chain-Focused Financing, an event to stimulate the interest on behalf of public sector institutions related to the financial sector, as well as Ecuadorian ministries such as MIPRO, MAGAP, and MCPEP. Private financial institutions, such as banks and savings and loan cooperatives will also be invited.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 31 Develop the methodologies and materials necessary for the financial literacy program, test the program on a pilot basis, and make necessary adjustments in preparation of the final version to be implemented.
Complete the mapping of financial service organizations located in the border provinces of Ecuador, and build a database of national and international entities that support the micro-enterprise sector, particularly the agricultural sector.
Planned the following activities: mapping organizations that offer financial services in the border provinces of Ecuador; developing content, materials, and art for the financial literacy program; and improving the PRODEL value chain finance methodology. The PRODEL team developed terms of reference for all the activities to be used to hire consultants or as the basis for cooperative agreements with partner organizations.
4. EXPAND AND TRANSFER THE VALUE CHAIN MODEL
The expansion and transfer of the value chain model building on experiences gleaned from the first phase of PRODEL constitutes a key element of the second phase of the program. PRODEL team members will conduct trainings and workshops with Ecuadorian public and private sector counterpart organizations on best practices in the facilitation of value chain activities that involve small producers. The training events will be implemented directly by the PRODEL technical team and financed through the program. Every effort will be made to seek co-investments for these trainings that directly benefit representatives from the participating entities.
4.1 Achievements during the Quarter A number of planning meetings have been held with the following Government of Ecuador organizations and ministries to include, Plan Ecuador, The Production Ministry (MIPRO), The Ministry for Coordination of the Production, Employment, and Competitiveness (MCPEC) and the Pichincha Provincial Council.
4.2 Challenges Encountered and Alternatives Employed Strengthening horizontal and vertical linkages throughout value chains involves educating stakeholders on their role in the value chain and the merits of taking an industry-based approach to increasing firm-level competitiveness. The emphasis on
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 32 the market and the creation of the demand to pull products rather then a push strategy from the producers is a deviation from the status quo and as such, the team has found resistance to these changes. The PRODEL team is working with Ecuadorian governmental ministries and agencies such as MCPEC, MIPRO, MAGAP and Plan Ecuador to promote the value chain development model through workshops and presentations that focus on value chain methodologies for economic development in Ecuador. The goal is to encourage public and private sector entities that work in economic development to incorporate best practices for small businesses that include value chain methodologies for economic growth within their overall strategic planning processes.
4.3 Activities Planned for Next Quarter
The Pichincha Provincial Council is currently implementing organic farms throughout the Province and has plans to coordinate a subsequent expansion to additional Ecuadorian Provinces. This Council has expressed an interest to receive instruction in the short term from PRODEL technical team members through trainings and farmer field schools that cover the concepts of value chains, competitiveness, strategic analysis, best agricultural practices and business planning.
5. PULLING IN LOCAL SERVICE PROVIDERS
5.1 Achievements during the Quarter
Services procured through the Enterprise Partnership Funds were almost exclusively from local service providers in Ecuador. Services were in the following areas: sub- sector analysis, events and publications, business development software, and technical assistance in certification.
In order to organize the large number of potential providers for the second phase of the program, the PRODEL team has compiled a database of local providers.
5.2 Challenges Encountered and Alternatives Employed
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 33 The PRODEL team hired eight local consultants to study potential subsectors for Phase II. Locating experienced, high-quality consultants that were available on short notice proved to be a challenge. While the work was completed on time, a significant amount of follow up time on the part of PRODEL staff was required to ensure quality products. For the future, we plan to reach out to consultants who are associated with universities, as they provided the highest quality subsector analyses.
5.3 Activities Planned for Next Quarter
Publish an announcement to recruit highly qualified consultants to expand the cadre of providers in the PRODEL database on which the program and its beneficiary partners can draw.
Organize, streamline, and update the existing database.
Offer Phase II anchor firms access to the updated database in an effort to support and stimulate procurement processes.
6. MONITORING AND EVALUATION
6.1 Achievements during the Quarter
The Monitoring and Evaluation System has been designed and the formats generated for the second phase of PRODEL. The system includes a causal model that describes program activities, products, outcomes, effects and impacts. The M&E team has also prepared the format for the PRODEL quarterly targets and includes a clear description of the indicators and the data collection tools. A set of M&E tools has been designed that will allow the team to gather the necessary information necessary for reporting purposes.
Because this is the first quarter of the second phase, there are no results to report for this quarter. The table below details the key indicators that PRODEL will report on in subsequent quarters.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 34
Table 5: PRODEL II Key Indicator Achievements Life Of Target To Progress To 1st % Of Target Indicator Baseline Project 1st Qtr Fy Qtr Fy 2010 Achieved Targets 2010
Number of Urban and 34 10 10* Rural Anchor Firms
Number of families 13,600 0 beneficiaries
Number of new or improved hectares of licit 9,600 0 crops
Number of new full time 6,800 0 equivalent jobs
Increase in family income 75% 0 from targeted sectors
Increase in Farmer Group’s sales to Anchor 75% 0 Firms
GOE/NGO Technicians 300 0 Trained
*These anchor firms have been selected by the PRODEL team as of December 31, 2009
To facilitate data processing, the documentation of field experiences, and to maximize the use of information coming from the field, PRODEL began using the Qlik View software program.
The PRODEL team began gathering baseline data for the first 10 anchor firms selected for the program.
6.2 Challenges Encountered and Alternatives Employed The relationship between the new anchor firms for the second phase of PRODEL and their producer groups has been primarily commercial in nature to date. Through
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 35 PRODEL facilitated technical assistance, information for the key indicators of the program will be gathered more readily; nevertheless, the type of data required for PRODEL M&E reporting purposes exists on a very minimal basis in the field in Ecuador and requires a substantial amount of beneficiary training and education to acquire. Many companies in Ecuador have not worked with large numbers of producers in the past and they are not accustomed to gathering information from these individuals necessary for business management purposes.
6.3 Activities Planned for Next Quarter Establish the baseline for the first 10 anchor firms. Hold a training workshop with the technical anchor firm staff responsible for recording data. Begin gathering information from producers for monitoring and evaluation reporting purposes.
7. SUBCONTRACTS AND GRANTS
7.1 Achievements during the Quarter
The PRODEL subcontract and grants department focused on the following activities during the 1st quarter of FY 2010: Conducted final grants and subcontracts program evaluation visits to PRODEL phase I anchor firms. Supported the activities and acquisitions required by the CABP component of PRODEL. Hired consultants to conduct subsector analyses of potential value chains for PRODEL Phase II. Contracted with local providers who organized the “Borders of Peace – Supporting Efforts and Harvesting Development” event held on October 29, 2009, edited its promotional video, and designed the publication depicting PRODEL phase I results.
Closed out the process for the granting of US$2,287,559 through the Enterprise Partnership Fund for the first phase of PRODEL with the 20 participating anchor
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 36 firms and their producer groups in adherence with established USAID standards, protocols, and procedures.
7.2 Challenges Encountered and Alternatives Employed In the first phase of the Program, the process of issuing the grants from the EPF was a complex and tedious process which resulted in delays in implementation. In an effort to improve the process for Phase II, ACDI/VOCA’s Senior Director of Awards and Compliance, Paula Wood, visited the PRODEL offices in Quito in November of 2009 to explore ways to streamline procedures for PRODEL subcontracting and grant making processes. As a result of this visit, the sub-contracts and grants specialist updated templates to improve efficiency levels in processing the Enterprise Partnership Fund awards and related activities to be sub-contracted.
7.3 Activities Planned for Next Quarter
Train PRODEL local business development advisors on the mechanisms, procedures, and requirements that anchor firms must adhere to in order to be eligible for the Enterprise Partnership Fund.
Conduct a workshop with the selected anchor firms and producer groups to train them on the rules and protocols required to access the PRODEL Enterprise Partnership Fund. Topics will include overall guidelines and objectives for the program, grant management and administration, specific USAID subcontract and grant policies and procedures, and forms used for the subcontract and grant process.
Coordinate visits to anchor firms to facilitate the process of gathering data and completing forms. During this stage, priority will be given to reviewing the grant application forms, verifying budgets and counterpart contributions, articulating goals and strategies, and analyzing management performance indicators.
Sign EPF grant agreements with first 10 anchor firms and begin implementation of their proposed programs.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 37 8. CERTIFICATION OF AGRICULTURAL BEST PRACTICES (CABP)
The Certification of Agricultural Best Practices component of PRODEL was completed as of December 31, 2009 and met or exceeded all of its established targets. The plans are to continue with certification activities during PRODEL II with follow up to CABP activities performed by the PRODEL technical team members.
The Certification of Agricultural Best Practices (CABP) team worked with producer groups linked to the following six anchor firms that participated in the first phase of PRODEL: Gruppo Salinas, SKS, COFINA, AAPROCASH, Aroma Amazónico, and APROCA. The participating producer groups implemented a certification Internal Control System (ICS) with the assistance of consultants hired by CABP. The number of producers involved in implementing the ICS exceeded the established targets (see Table 7). Additionally, the CABP team implemented the ICS with the ACRIM, APEOSAE, and APECAEL coffee producer groups linked to FAPECAFES in the provinces of Loja and Zamora Chinchipe, as well as with Café Vélez technical staff in the Cariamanga Canton, where two new associations have implemented the process.
The CABP team conducted training workshops to train internal auditors in the two certification standards targeted by the program (Organic and Rainforest Alliance). These internal auditors began conducting audits of their producer groups, which were also evaluated by local certification agencies such as BCS (Bio Control Systems) and C&D (Conservation & Development). The results obtained exceeded expectations as illustrated in Table 7 below. BCS ÖKO Garantie conducted 12 visits to CABP-designated groups to evaluate their ICS and grant certification to those producer groups that met necessary standards. In December 2009, Aroma Amazónico, Gruppo Salinas (FISPDICA/NAAT-E), and FAPECAFES (PROCAP, APECAP, APECAM) fulfilled the standards for organic certification and in January 2010, FAPECAFES (ACRIM, APEOSAE), APROCA, San Carlos, ECOCACAO, APEOSAE, and AACRI Rio Intag will receive organic certification as well.
Conservation & Development (C & D) conducted audits of four groups of producer organizations as suggested by the CABP team; two of these groups, AAPROCASH and AACRI Rio Intag, passed the audit and are currently in the process of receiving their certificate to be issued by the Sustainable Agriculture Network. The producer groups associated with the SKS and FAPECAFES anchor firms still need to make improvements to their ICS with regard to Sustainable Agriculture Standards. They are considered to be in process of certification, as a result. At the request of APEOSAE, the PRODEL team will hold a repeat ICS evaluation visit in April of 2010.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 38
Table 6: Certification Activities for Anchor Firms in the First Quarter of FY 2010
Anchor Firm Certification Activity
1 AACRI Rio Intag - AACRI Rio Intag provided the necessary materials for the micro-organism product application trials, conducted on five plots of land. - The AACRI Rio Intag Association passed its external audit for Sustainable Agriculture Network standards. - AACRI Rio Intag incorporated 70.48 hectares into its ICS to comply with Rainforest Alliance certification standards. 2 FAPECAFES - With support from the CABP team, the FAPECAFES technical team surpassed its goals for the reforestation program. - The firm established a total of 80 family nurseries that currently contain 54,950 native species forest plants. - The CABP team estimates that plants from the CABP nurseries will be sufficient for 1,374 hectares of coffee plantations. - C & D conducted an external audit of APEOSAE to determine its compliance with Rainforest Alliance certification standards. The association did not meet the minimum requirements for certification. APEOSAE staff must comply with the auditor’s requirement by April 2010. - A total of 109 new producers, belonging to the PROCAP, APECAP, and APECAM associations have joined the FAPECAFES ICS for organic certification (228.25 hectares). The CABP component funded 50% of the cost for this activity. - Another 839 coffee producers obtained organic re-certification for the 2009- 2010 period. The CABP component funded 50% of the cost. - The ACRIM association linked to the FAPECAFES anchor firm passed the organic certification inspection. - The ACRIM association will comply with the steps required to obtain organic certification for 258 additional hectares by 2010. - The APECAEL association, a new coffee supplier to FAPECAFES, has participated indirectly in CABP activities. The association’s technical team participated in the internal auditing workshops on Organic and RAS certifications and is currently implementing the standards. The association has requested an inspection for mid-2010. - The FAPECAFES team conducted four rapid wildlife inventories in the APEOSAE area of influence covering Zamora Chinchipe and Morona Santiago Provinces. The workshops, which utilized the Farmers Field School methodology, took place in Nagaritza, Centinela del Condor, El Pangui, and Gualaquiza (Morona Santiago). 3 Café Vélez - The CABP team, in coordination with Café Vélez field technicians, began the implementation of certification standards with two new producer associations in the Cariamanga Canton of Loja Province. BCS ÖKO Garantie staff pre-inspected the Cariamanga Association and the El Laurel Association, which resulted in action plans for both associations. These associations have requested subsequent evaluations for mid-2010. 4 Café Galletti - Representatives from the El Colmenar Association, in conjunction with the FUNDATIERRA NGO and the CABP team, assisted El Airo Association to obtain organic certification. - BCS ÖKO Garantie pre-inspected El Airo Association.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 39
Anchor Firm Certification Activity
- El Airo has 422 producers and is currently establishing an ICS. - The El Airo association has initiated the certification process and is preparing for an organic certification evaluation in mid-2010. 5 APROCA - As required, the APROCA ICS incorporated 120 additional producers. Of these 120, 26 were organic. The remaining 94 are still in transition after the BCS ÖKO Garantie inspections revealed agro-chemical use. - APROCA staff has committed to the necessary follow-up to ensure the success of the demonstrative plots to which the microbiological products from the AACRI Rio Intag biocatalyzation laboratory are to be transferred. - The CABP reforestation program in APROCA produced a total of 4,000 native plant species to be established on 175 hectares of plantations in the Muisne and Atacames Cantons of Esmeraldas Province. - In October 2009, the firm held two rapid wildlife inventory workshops for 50 participants from the Muisne and Rio Verde Cantons during which a list of birds and mammals that exist on participant plantations was developed. 6 SKS - SKS held a rapid wildlife inventory workshop in the ECOCACAO area of influence. - The CABP team obtained the management plan for the ECOCACAO area of influence where the Galeras-San Francisco peninsula is a significant social and environmental conservation zone. - ECOCACAO was approved for organic certification. 7 AROMA - The contract for updating Aroma Amazónico’s ICS concluded with 411 new AMAZÓNICO producers incorporated into the organic certification process. 8 COFINA - The contract for updating the San Carlos cacao association (linked to the COFINA anchor firm) ICS, exceeded expectations. San Carlos technical staff and producers participated actively and consistently in obtaining their ICS for organic certification. - In addition to the 200 internal audits established through the San Carlos ICS contract with CABP, an additional 384 internal audits were conducted. 9 AAPROCASH - The AAPROCASH Association ICS passed both Organic and RAS certification programs. - The process for issuing their certifications will conclude in January 2010.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 40
8.1 Achievements during the Quarter BCS ÖKO Garantie Certification Company delivered 12 inspection reports for CABP participating anchor firms and their producer groups. Four firms (520 producers) received their organic certificates this quarter; five groups (1,539 producers) will receive their certificates next quarter; and three producer groups did not meet the minimal requirements. All three are following inspector’s recommendations and expect to be certified by mid-2010.
BCS ÖKO Garantie delivered 1,500 copies of the Organic ICS Implementation Manual, which consists of material developed by the BCS technical team and revised by the PRODEL/CABP technical team. The manual was delivered to organic producers that are beneficiaries of the CABP component.
PRODEL CABP sub-contractor Conservation and Development (C&D) conducted four producer group certification evaluations that demonstrated results from seven pre- audit assessments. C&D approved AAPROCASH and AACRI Rio Intag (a total of 331 producers) and producers linked to these two anchor firms will obtain their certifications in the next quarter. ECOCACAO and APEOSAE did not pass their audits due to substandard internal plans and control systems. They are currently implementing recommendations from the audit and will be reevaluated in mid- 2010.
C&D delivered 1,500 copies of its Working Plan Calendar to CABP beneficiaries. The document provides implementation and follow-up instruction pertaining to Sustainable Agriculture Network standards.
The CABP team conducted three Integrated Pest Management (IPM) two-day workshops in Esmeraldas, Loja, and Lago Agrio for anchor firms, local NGOs, and public sector representatives. The workshops addressed current IPM strategies, including on-site microbiological production.
The CABP Reforestation Program successfully planted native species forest plants on 673.75 hectares. A reforestation plan is scheduled for the establishment of additional nurseries capable of reforesting 1,110 hectares. A total of 66,550 native tree species were planted or are in the process of being planted as a result of donations from local government agencies and private companies.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 41 The CABP consultant contract for a feasibility study in the field with coffee, cacao, and banana of AACRI Rio Intag’s micro-organism pest and disease control products was completed this past quarter. Due to time limitations, experiments focused on short-term goals related to physiological changes in plants. A total of five plots were established: one in Esmeraldas Province (Atacames), two in Loja Province (Vilcabamba), one in El Oro Province (El Guabo), and another in Sucumbios Province (Shushufindi).
Anchor firms conducted rapid assessment wildlife inventory workshops attended by producer groups from Esmeraldas Province (APROCA, ECOCACAO), Zamora Chinchipe Province (APEOSAE), Sucumbios Province (AAPROCASH), and Orellana Province (San Carlos).
Table 7: CABP Key Progress Indicators and Targets
Life Of Cumulative Indicator Project Base Line Progress To Target Dec. 31, 2009
Number of hectares for which the certification process has been initiated 1,500 0 (combined cacao and coffee) 3,432.5
Number of hectares certified (combined 1,276.5 cacao and coffee) 500 0
Number of families with an increase in 355 their economic benefits 250 0
Number of families that will indirectly benefit from this component 1,500 0 1,618
Number of rapid wildlife inventories (conducted by producers as part of 10 0 10 certification process)
Number of certified hectares with management plans in place 500 0 500
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 42 Number of reforested hectares with native species shade coverage 500 0 673.75
8.2 Challenges Encountered and Alternatives Employed Beneficiary producer groups have a limited knowledge of environmental issues, resulting in environmentally damaging farming practices. Training programs on more beneficial on-farm practices that reach rural areas could be successful in articulating the affects of poor environmental practices. PRODEL experience indicates that producers readily accept new ideas for environmental preservation and protection measures, especially when linked to the potential direct affect on global issues such as climate change and global warming.
8.3 CABP Lessons Learned Due to continual change in ICS processes necessary to obtain certification (Organic, Fair Trade, Rainforest Alliance, and GlobalGAP), the PRODEL team recommends ongoing anchor firm and producer group monitoring of required certification activities. Generally, such processes take a minimum of three years to implement with producer groups depending on the product-specific market requirements.
The use of beneficial microorganisms to combat pests and improve crop nutrition must be expanded. Due to positive results to date in pest and disease control for cacao, coffee, and banana through microorganisms cultivated in the laboratory located at the AACRI Rio Intag anchor firm factory, this technology is transferable to additional producer associations in an effort to achieve organic certification. The Runa Yuyai quinoa producer association linked to the Cereales Andinos anchor firms for the program has purchased microorganisms from the AACRI Rio Intag laboratory for pest control use on their farms in Imbabura Province. Other institutions that have expressed interest include Endesa Botrosa, and the Pichincha Provincial Council. This involves research to obtain local microorganisms, training of beneficiaries, and access to laboratory products. A campaign to publicize this methodology is essential for encouraging clean farming alternatives.
All field activities completed with farmers, whether large or small, should be accompanied by reforestation and environmental recovery campaigns, especially targeted at defending bodies of water and rejuvenating surrounding plant life. Such
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 43 efforts are crucial for maintaining humidity and rainfall levels in different agricultural regions. This works to preserve the biodiversity and is valued by certain international markets that are searching for products such as coffee and cacao that adhere to these principles. In addition, due to the mountainous topography in central Ecuador, reforestation and agroforesty systems help to protect soils and environmental conditions necessary for the sustainability of these crops.
Implementing certification processes for producer groups effectively increases prices, provides them with tools to negotiate with customers, and opens up domestic and international market niches.
9. MANAGEMENT
9.1 Achievements during the Quarter Local business development adviser for the southern region, Fernando Jaramillo, was replaced by José Jiménez. Jiménez has experience in economic development work at the local level in Loja and in the Dominican Republic. In addition, the local business development adviser for the northern region was replaced by Carlos Mayanquer who has a background in financial administration and technology management focused on field based economic and business enterprise development as well as strengthening of producer associations at the local level.
9.2 Challenges Encountered and Alternatives Employed Rolling power outages in Ecuador caused the PRODEL office to operate without electricity for multiple hours each day. This has affected the PRODEL work rhythm, but the the team has made every effort to work within these constraints, including completing their computer work around the scheduled black outs, holding meetings out of the office during blackout periods, modifying office hours to coordinate with the hours without electricity. While this came at a time when the team was responsible for a number of program deliverables, every effort was made to meet the established deadlines.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 44 ANNEX 1 – ANNUAL REPORT -- LESSONS LEARNED AND GUIDELINES FOR FUTURE ACTIVITIES FROM PRODEL PHASE I, FY 2009
Lesson 1: Joint participation in the design and formulation of a Business Plan
The process of preparing a business plan for anchor firms must be participatory and comprehensive, with significant and active presence of value chain stakeholders from the anchor firm backwards to include, producers and suppliers. This will allow producers to actively participate during program planning and implementation, based on their own realities, needs, and commitments. PRODEL team members have worked to facilitate the business planning process but direct participation in this process on behalf of anchor firm representatives and producers helps to ensure a more sustainable process. This hands on involvement in the PRODEL business planning process on behalf of beneficiaries has resulted in loans for their businesses and improved management skills that heighten competitiveness in the marketplace. This business planning process will be streamlined in the second phase of PRODEL to create greater levels of efficiency for Enterprise Partnership Fund (EPF) implementation during this phase of the program. Upon completion of business planning, inputs for the EPF should be ready to proceed with this investment aspect of the program.
Lesson 2: Achieving leverage
In order to improve the results and impact of the program, it is necessary to establish complementary alliances to develop projects of mutual interest. The Provincial Council of Sucumbios is a good example of collaborative work. Specialized personnel from this council can provide technical assistance and resources to purchase tools, but cannot finance the additional activities required by the anchor firm. This is where PRODEL comes in to facilitate the economic growth process through pinpoint financing to help firms to access markets and improve productivity. These alliances between PRODEL and important local actors result in important synergies.
Lesson 3: Firms must have a spokesperson
Experience has shown that the best results have been accomplished with those anchor firms who assigned a person to be directly responsible for the PRODEL project for each value chain.
Lesson 4: Influencing the technical staff selection process within anchor firms and producer groups
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 45 Given the employment crisis in Ecuador, many have felt the pressure to help relatives, friends and/or acquaintances by finding them permanent, good paying employment. Anchor firm leaders are required to hire technical experts in the field. PRODEL should be involved in the staff selection process for anchor firms in order to guarantee the involvement of qualified individuals. In conclusion, the anchor firm project staff for the PRODEL grant must be recruited jointly between PRODEL and the anchor firm and the individuals selected should function as full time anchor firm personnel, guaranteeing sustainability for program and anchor firm objectives.
Lesson 5: Influence the long-term programs of Local Governments
Although significant investments were made and results produced in the improvement of the business climate within municipalities during PRODEL I, not enough follow up has taken place since its completion on September 30, 2009, resulting in a potential loss of sustainability. Municipal governments should adopt a more long range and strategic planning process that will remain in place beyond specific project funding and the term limits of elected officials.
Lesson 6: Vertical linkages have been strengthened through PRODEL activities
Improving linkages within anchor firm supply chains has led to increased trust and recognition of interdependence among producers, anchor firms and intermediaries during the past year of PRODEL. As a result, a number of anchor firms have started offering financing and embedded services to their providers, leading to stronger, more capable businesses for both the producers and the anchor firms. In the next phase of the program, the plan is to finance participation of anchor firm and producer group representatives in Strategic Business Management courses offered through institutions such as the Monterrey Technological Institute. This course increases knowledge that serves to strengthen vertical linkages between anchor firms and their markets and anchor firms and their producer groups.
Lesson 7: Market-oriented program is important to sustainability
A number of PRODEL-supported anchor firms have participated in development projects in the past. The general consensus among anchor firm CEOs is that these projects were well intentioned but focused heavily on providing direct services and goods to farmers or private firms with limited co-investment or attention to the market system. Anchor firm representatives consistently pointed to PRODEL’s market-driven approach and see co- investment as a more sustainable model. Direct contact with potential buyers and brokers in the international marketplace has been established as a core goal for the second phase of PRODEL. A list of potential trade fairs provided by the Ecuadorian Export and Investment Corporation (CORPEI) in the PRODEL annual work plan will be targeted by the PRODEL team during the second phase of the program.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 46 Lesson 8: Value chain financing concepts must be shared with Ecuadorian financial institutions
Due to the lack of financial institutions willing to provide credit for agriculture in Ecuador, financing in this sector remains limited. Contributing factors include the asymmetry of information, the degree of informality in the agriculture sector, and the lack of low risk financing products. The National Development Bank, an important stakeholder due to its extensive network of offices and experience in this sector, provided most of the financing during the first phase of PRODEL. The scope of the financial component will broaden in phase II of PRODEL to include additional Ecuadorian public and private institutions that have the capacity to provide credit to the agricultural sector. The focus will be on a financing through the value chain, an approach that has seen increasing success in the financial sector in the region and around the world.
Lesson 9: A financial literacy program is needed in Ecuador
Farmers’ limited financial literacy knowledge creates barriers to their ability to manage their finances and access credit. It prevents farmers from applying for loans and when they do, they tend to request excessive amounts that are beyond their capacity for repayment, thus worsening their situation. In turn, this keeps financial institutions from granting loans, further restricting farmer access to credit. In response to this, PRODEL will spearhead a financial literacy program for agricultural sector producers and stakeholders in an effort to increase access to financial products in Ecuador in Phase II of the program.
Lesson 10: Farmer Field School methodology is applicable as a training tool for producers and other PRODEL stakeholders
The PRODEL team provided technical assistance during PRODEL phase I through the farmer field school methodology, which strengthened the linkages between suppliers and firms. The use of this methodology resulted in a high percentage of farmers that adopted new technologies to increase quality and productivity. The PRODEL team recommends utilizing this versatile farmer field school tool in phase II of PRODEL to train trainers in the area of value chain financing in addition to the areas of quality and productivity covered during the first phase.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 47 ANNEX 2 – ANNUAL REPORT -- PRODEL FY 2009 ACHIEVEMENTS TO DECEMBER 31, 2009
Table 8: Achievements to December 31, 2009 for PRODEL I Indicators Cumulati Cumulative % Of Life Of ve Baseline Fy09 Progress Fy09 Indicator Project Progress (1) Progress To Sep. Target Targets To Sep 2009 Achieved 2008
Number of families linked to anchor 2,295 8,000 2,750 6,339 9,089 113% firms receiving PRODEL assistance
Hectares of licit crops cultivated by producer families 2,296 4,000 2,800 10,309 13,109 327% supplying PRODEL anchor firms
Number of new full time equivalent jobs for producers linked 1,032 4,000 2,008 6,282 8,290 207% with PRODEL anchor firms
Increase in anchor 43,025,058 51,762,500(2) 43,025,058 44,305,245(3) 44,305,245(3) 86% firms sales ($)
Number of small and medium enterprises (anchor firms) 0 20 10 10 20 100% assisted by the PRODEL program
Number of Municipalities assisted and that 0 10 4 8 12 120% contributed to improve the business
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 48 environment
(1) The PRODEL team has also worked with the families included in the baseline. (2) December 31, 2009 target according to Ecuadorian Fiscal Year. (3) December 31, 2008 progress according to Ecuadorian Fiscal Year. The new information for the increase in anchor firm sales figure to December 31, 2009 will be available as of April 30, 2010 which corresponds to the date that the Ecuadorian Business Superintendent requires the information.
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 49 ANNEX 3 – ANCHOR FIRM EVALUATION MATRIX
Peso criterios de Criterios de Selección Criterios de segundo nivel Calificación segundo nivel
1 Gestión de Mercado 100% 5.00 Valores inferiores al 1,00% = -5 ; 1,01% - 4,00% = 1 ; 4,01% - 1.1 Promedio de crecimiento en ventas de los últimos cinco años 5 8,00% = 2 ; 8,01% - 12,00% = 3 ; 12,01% - 15,00% = 4 ; más de 15% Crecimiento promedio proyectado para los próximos cinco No posee información = 0; Valores inferiores al 1,00% = -5 ; 1.2 10% 5 años 1,01% - 4,00% = 1 ; 4,01% - 8,00% = 2 ; 8,01% - 12,00% = 3 ; Ninguna = 0 ; Estudio de mercado actualizado (desde año 2008) 1.3 Maneja información de mercado 10% 5 = 3 ; Plan de Marketing actualizado (desde año 2008) = 5 Cantonal = 1 ; Provincial = 2 ; Regional = 3 ; Nacional / Exporta 1.4 Cobertura geográfica de las ventas 20% 5 indirectamente = 4 ; Exporta directamente = 5 Ninguna = 0 ; Actividades de comunicación realizadas = 1 ; 1.5 Actividades de comunicación realizadas el periodo anterior (año 2008) 15% 5 Actividades + presupuesto = 2 ; Actividades + presupuesto + 1.6 Concentración del 80% de ventas en clientes 1 a 2 clientes = 0 ; 3 a 4 = 1 ; 5 a 6 = 3 ; más de 6 = 5 15% 5
1 a 2 productos = 0 ; 3 a 4 = 1 ; 5 a 6 = 3 ; 7 a 15 = 5; 16 a 20 = - 1.7 Concentración del 80% de ventas en productos 15% 5 1; 21 a 30 = - 2; más de 31 = - 3 2 Vínculo e impacto con productores 100% 5.00 Relación actual con pequeños productores en las zonas de NO = 0 ; 1 - 50 = 1; 51 - 149 = 2 ; 150 - 299 = 4 ; MÁS DE 300 2.1 20% 5 influencia de PRODEL = 5 Ninguno = 0 ; Relación comercial (compra) = 1 ; Provee insumos 2.2 Nivel de involucramiento actual con los productores 20% 5 = 2 ; Provee asistencia técnica = 3 ; Participó certificación = 4 ; Cantidad de hectáreas sembradas en la actualidad por los NO = 0 ; 1-75 = 1 ; 76 - 150 = 2 ; 151 - 225 = 4 ; MÁS DE 225 = 2.3 10% 5 productores que tienen relación con la empresa y se 5 Cantidad de hectáreas sembradas y certificadas en la actualidad NO = 0 ; 1-75 = 1 ; 76 - 150 = 2 ; 151 - 225 = 4 ; MÁS DE 225 = 2.4 10% 5 por los productores que tienen relación con la empresa y se 5 Estructura jurídica y/o nivel de asociatividad de pequeños No están asociados formalmente = 0 ; Están organizados pero no 2.5 5% 5 productores proveedores actuales de la empresa formalizados = 3 ; Están formalizados = 5 Volumen de compra a pequeños productores en las zonas de Menos del 5% = 0 ; 6% - 10% = 1 ; 11% - 15% = 2 ; = 16% - 2.6 15% 5 influencia de PRODEL dentro del total de compras 20% = 4 ; más del 20% = 5 Potencial para incrementar el número de pequeños NO = 0 ; 1- 50 = 1 ; 51 - 149 = 2 ; 150 - 299 = 4 ; MÁS DE 300 2.7 10% 5 productores en las zonas de influencia de PRODEL = 5 Potencial para incrementar el número de hectáreas en las NO = 0 ; 1-75 = 1 ; 76 - 150 = 2 ; 151 - 225 = 4 ; MÁS DE 225 = 2.8 10% 5 zonas de influencia de PRODEL 5 3 Gestión / Posicionamiento de la empresa 100% 5.00 3.1 Gestión Financiera 100% 5.00 Genera información financiera de forma periódica (balance Diaria = 5 ; Semanal = 3 ; Quincenal = 2 ; Mensual = 1; Superior 3.1.1 20% 5 general y estado de resultados) a un mes = 0 ; No tiene = -5 Promedio de la rentabilidad sobre activos de los dos últimos Valores negativos o iguales a cero = -5 ; 1% - 5% = 1 ; 6% - 10% 3.1.2 5 periodos = 2 ; 11% -15% = 3 ; 16% - 20% = 4 ; más de 20% = 5 25% Asignar 5 puntos si se encuentra entre 10% al 15%, 3 puntos si 3.1.3 Promedio de prueba ácida de los dos últimos periodos 5 esta entre 5% y 10% ó entre 15% y 20%; Otros valores calificar 20% Nivel de apalancamiento (Pasivos / Patrimonio) del último Asignar 5 puntos si su valor es menor al 50% ; 3 puntos si se 3.1.4 5 periodo encuentra entre 50% y 100%; 1 punto si se encuentra entre 100% 20% 3.1.5 Estado actual en lista blanca del SRI SI = 5 ; NO = -5 5 15% 3.2 Gestión Operativa 100% 5.00 Menos de 8% = 5 ; entre 9% y 12% = 4 ; entre 13% y 16% = 3 ; 3.2.1 Eficiencia (Gastos operativos / Total ventas) año 2008 25% 5 entre 17% y 20% = 2 ; entre 21% y 24% = 1 ; más de 25% = 0 Sin certificación = 0 ; 1 Certificación = 1 ; 2 certificaciones = 3 ; 3.2.2 Certificaciones (BPM , ISO , etc) 15% 5 más de 2 certificaciones = 5 No tiene = 0 ; Manual de procesos = 1 ; Actividades de 3.2.3 Actividades de mejoramiento continuo 15% 5 planificación y Manual de procesos = 2 ; Actividades de Plan Estratégico (PE) = 1; PE + POA = 2; PE + POA + 3.2.4 Herramientas de gestión para alineamiento 20% 5 Sistemas de Información (SI) = 4; PE + POA + SI + BSC = 5 Artesanal = 1 ; Semi Tecnificado = 2 ; Tecnificado = 3; Ultima 3.2.5 Nivel de tecnificación propio o tercerizado 25% 5 tecnología = 5 3.3 Gestión Interna 100% 5.00
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 50 3.3 Gestión Interna 100% 5.00 3.3.1 Años de funcionamiento Menos de 3 años = 0 ; 3 - 5 = 3 ; más de 5 años = 5 5% 5
Jefatura operativa: decisiones y operaciones centralizadas en una o 3.3.2 Estructura organizacional administrativa 20% 5 dos personas = 0; Esquema organizacional definido: Menos del 5% del personal tiene formación universitaria = 1 ; 6%- 3.3.3 Nivel de competencias 20% 5 10% = 2 ; 11% - 15% = 3 ; 15% - 20% = 4 ; más del 20% = 5 Eventualmente realiza I&D = 0; Realiza periódicamente (al 3.3.4 Investigación y desarrollo 15% 5 menos anual) actividades de I&D = 2; I&D es parte de su Ha logrado la empresa diferenciación en calidad por innovación 3.3.5 Innovación 25% 5 en Tecnología = 1, Tecnología + Procesos = 3; Tecnología + No posee reglamentos y normativas internas = 0; Posee 3.3.6 Normativa interna 15% 5 reglamentos y normativas internas = 3 ; Se utiliza dentro de las 3.4 Competitividad 100% 5.00 Capacidad o recurso es Valioso (V) = 1; V + Diferente (D) = 2; 3.4.1 Ventaja Competitiva sostenible 25% 5 V + D + Caro de Imitar (C) = 4; V + D + C + Insustituible = 5 No = 0 ; Software contable no integrado con producción y ventas 3.4.2 Utiliza herramientas informáticas para su gestión 20% 5 = 1 ; software contable integrado con producción y ventas = 2 ; No = 0 ; Informativa únicamente = 1 ; Informativa y correo 3.4.3 La empresa tiene una página web propia 10% 5 electrónico = 2 ; informativa + correo electrónico + permite 3.4.4 Maneja un sistema de servicio al cliente y/o post venta 20% 5 No = 0; Personalizado = 3; CRM = 5 No = 0 ; Tiene organigrama = 1 ; Organigrama + manual de 3.4.5 La empresa tiene un sistema de gestión para el talento humano 25% 5 funciones = 2 ; Organigrama + manual de funciones + 3.5 Disponibilidad de recursos 100% 5.00 Número de fuentes de financiamiento abiertas que posee en la 3.5.1 50% 5 actualidad No = 0 ; 1 a 3 = 3 ; más de 3 = 5 Ciclo financiero del negocio = Rotación de inventarios + 3.5.2 50% 5 Periodo promedio de cobro - Periodo promedio de pago Menos de 30 días = 5 ; 30 - 45 = 3 ; 46 - 90 = 1 ; más de 90 = -5 3.6 Producto 100% 5.00 Productos poseen registro sanitario y demás requsitos para ser 3.6.1 30% 5 expendido. No = 0 ; Cumple en un 50% = 3 ; Cumple al 100% = 5 Estado de procesamiento del principal producto dentro de las 3.6.2 Materia prima = 1 ; Semi elaborado = 3 ; Procesado = 5 30% 5 ventas El principal producto que vende la empresa posee algún tipo 3.6.3 25% 5 de certificación. SI = 5 ; NO = 0 No está posicionada = 0 ; Posicionada en un 25% = 1 ; 3.6.4 Cómo calificaría el posicionamiento de la marca? 15% 5 Posicionada en un 50% =2 ; Posicionada en un 75% = 4 ; 4 Referencias Profesionales 100% 5.00 Referencias por parte de los productores / Para el caso de NO = 0 ; Malas = -5 ; Buenas = 1 ; Muy Buenas = 3 ; 4.1 35% 5 empresas actuales, existe involucramiento con los Excelentes = 5 Referencias por parte de los clientes / Para el caso de NO = 0 ; Malas = -5 ; Buenas = 1 ; Muy Buenas = 3 ; 4.2 30% 5 empresas actuales cumple con envío de información y Excelentes = 5 Referencias por parte de la comunidad o el entorno / Para el NO = 0 ; Malas = -5 ; Buenas = 1 ; Muy Buenas = 3 ; 4.3 35% 5 caso de empresas actuales cumple con las metas previstas? Excelentes = 5 5 Acceso a servicios de apoyo 100% 5.00 No tiene acceso = 0 ; 25% de Productores= 1 ; 50% de 5.1 Acceso de actores a servicios financieros 35% 5 Productores=2 ; 75% de Productores tienen fácil acceso = 4 ; No tiene acceso = 0 ; 25% de Productores= 1 ; 50% de 5.2 Acceso de actores a Asistencia Técnica 30% 5 Productores=2 ; 75% de Productores tienen fácil acceso = 4 ; No tiene acceso = 0 ; 25% de Productores= 1 ; 50% de 5.3 Acceso de actores a otros servicios de apoyo 35% 5 Productores=2 ; 75% de Productores tienen fácil acceso = 4 ; CALIFICACIÓN FINAL 5.00
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 51 ANNEX 4: ANCHOR FIRM SELECTION SCORES FOR PHASE I FIRMS
Firms and subsectors positioning matrix considering the potential for inclusion (PFI)
Firm Firm Evaluation Subsector evaluation Potential for inclusion (PFI) ESCOFFEE 3.70 2.97 200 GRUPPO SALINAS 3.61 3.00 400 FAPECAFES 3.48 2.97 500 ASOGUABO 3.29 2.94 200 CAFÉ VÉLEZ 3.37 2.97 250 SKS 3.24 3.00 300 MONDEL 3.18 1.96 400 APROCA 2.78 3.00 10 COFINA 2.98 3.00 500 AACRI 2.92 2.97 10 ECOLAC 2.93 1.96 20 AAPROCASH 2.42 3.00 100 CEREALES ANDINOS 2.62 3.09 250 INAGROFA 2.17 3.09 197 AROMA AMAZÓNICO 2.04 3.00 10 SOL DE ORIENTE 2.17 2.97 10 AAPPSME 2.12 2.31 100 JUGO FÁCIL 3.01 2.94 300 GALLETTI 2.15 2.97 200
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 52 ANNEX 5 – SUBSECTOR EVALUATION MATRIX
Peso criterios Peso de Criterios de Selección de segundo Calificación Criterio nivel
Nombre de la Cadena Materias primas Productos terminados 1 Contexto del programa 10% 5.00 El subsector se encuentra dentro de los 10 sectores estratégicos definidos por el Estado 1.1 50% 5.00 ecuatoriano y/o definidos como prioritarios por el MAGAP.
1.2 Cuáles son las necesidades de agua del producto primario del subsector? 25% 5.00
Cuál es el impacto del cambio climático y las condiciones meteorológicas en la producción del 1.3 25% 5.00 subsector? 2 Entorno competitivo 15% 5.00 2.1 Grado de concentración (a nivel de transformación y/o de comercialización) 15% 5.00 2.2 Amenazas de nuevos participantes 15% 5.00 2.3 Sinergias entre los actores 20% 5.00 2.4 Amenazas de sustitutos 15% 5.00 2.5 Entorno: Clima de negocios, factores climáticos, ubicación geográfica 15% 5.00 2.6 Infraestructura pública 20% 5.00 3 Factores de mercado 15% 5.00 3.1 Participación en canasta básica - consumo doméstico 20% 5.00
3.2 Participación en exportaciones agropecuarias 25% 5.00
3.3 Crecimiento del PIB del sector en los últimos cinco años 25% 5.00
3.4 Crecimiento de la demanda a nivel internacional 30% 5.00 4 Factores tecnológicos 15% 5.00 4.1 Alcance de la innovación 30% 5.00 4.2 Velocidad de cambio (adaptabilidad) 20% 5.00 4.3 Diversidad de productos y/o uso final 20% 5.00 4.4 Nivel de valor agregado del producto final en el Ecuador 30% 5.00 5 Factores financieros y económicos 15% 5.00 5.1 Rentabilidad promedio sobre inversión del productor 30% 5.00 5.2 Disponibilidad de insumos 20% 5.00 5.3 Margen comercial de los productores / margen comercial empresas procesadoras 20% 5.00 5.4 Acceso a crédito de los actores 30% 5.00 6 Factores políticos 5% 5.00 6.1 Incentivos a la cadena (producción, comercialización, etc) 50% 5.00 6.2 Regulaciones y legislación 50% 5.00 7 Impacto 15% 5.00 7.1 Población ocupada en el producto/cadena de valor vs la PEA 10% 5.00 7.2 Indicador de generación de empleo por hectárea 30% 5.00
7.3 Ingreso promedio mensual del productor / canasta básica 20% 5.00 7.4 Hectáreas cultivadas en la actualidad vs Total hectáreas cultivables del país 20% 5.00 7.5 Potencial de la cadena para la inserción en el mercado de pequeños productores 20% 5.00 8 Transversales 5% 5.00 8.1 Género 25% 5.00 8.2 Recursos naturales 25% 5.00 8.3 Nutrición 20% 5.00 8.4 Democracia 30% 5.00 9 Liderazgo en la industria 5% 5.00 9.1 Voluntad para invertir 50% 5.00 9.2 Compromiso para participación de los pequeños productores en la cadena 50% 5.00 CALIFICACIÓN FINAL 5.00
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 53
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 54 ANNEX 6 – PRODEL I ANCHOR FIRM EVALUATION MATRIX SUMMARIES
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa Comercializadora Aroma Amazónico Aromazónico Cia. Ltda. RUC 1792143535001 Figura Jurídica Cia. Limitada. Comercializadora Cadena de valor Cacao Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Av. El Progreso 1006 y 10 de Agosto, Nueva Loja Teléfono de la empresa (06) 2835106 Fax de la empresa (06) 2835106 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.aromaamazonico.com 1 Gestión de Mercado 0.65 2 Vínculo e impacto con productores 3.80 3 Gestión / Posicionamiento de la empresa 1.49 3.1 Gestión Financiera (0.30) 3.2 Gestión Operativa 0.95 3.3 Gestión Interna 2.60 3.4 Competitividad 1.65 3.5 Disponibilidad de recursos 4.00 3.6 Producto 3.20 4 Referencias Profesionales 3.60 CALIFICACIÓN FINAL 2.31
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa AAPROCASH RUC 2191706385001 Figura Jurídica Asociación Artesanal Cadena de valor Cacao Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Av. de la Policía y Rocafuerte, esq., Shushufindi Teléfono de la empresa 06 2839085 Fax de la empresa 06 2839085 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web No tiene No tiene 1 Gestión de Mercado 1.00 2 Vínculo e impacto con productores 4.20 3 Gestión / Posicionamiento de la empresa 1.82 3.1 Gestión Financiera 2.20 3.2 Gestión Operativa 1.20 3.3 Gestión Interna 1.65 3.4 Competitividad 0.70 3.5 Disponibilidad de recursos 4.00 3.6 Producto 1.95 4 Referencias Profesionales 4.40 CALIFICACIÓN FINAL 2.70
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 55 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa COFINA Chocolates Finos Nacionales S.A. RUC 0991280855001 Figura Jurídica Sociedad Anónima Cadena de valor Cacao Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Km 11 vía Durán - Tambo (300 m pasando peaje) Teléfono de la empresa (593 4) 2513420 Fax de la empresa (593 4) 2513649 Dirección de correo electrónico de la persona de contacto [email protected]; [email protected] Dirección de la página web www.cofinacocoa.com 1 Gestión de Mercado 1.90 2 Vínculo e impacto con productores 4.05 3 Gestión / Posicionamiento de la empresa 2.81 3.1 Gestión Financiera 2.45 3.2 Gestión Operativa 1.60 3.3 Gestión Interna 3.35 3.4 Competitividad 2.50 3.5 Disponibilidad de recursos 5.00 3.6 Producto 3.35 4 Referencias Profesionales 4.30 CALIFICACIÓN FINAL 3.15
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa Piladora Sol de Oriente RUC 0908637259001 Figura Jurídica Persona natural (nombre comercial) Cadena de valor Café robusta Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Vía a Quito km 2 1/2, Nueva Loja Teléfono de la empresa 06 2831181 Fax de la empresa 06 2831181 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web http://www.piladorasoldeoriente.com/ 1 Gestión de Mercado 1.55 2 Vínculo e impacto con productores 3.10 3 Gestión / Posicionamiento de la empresa 1.88 3.1 Gestión Financiera 2.25 3.2 Gestión Operativa 1.95 3.3 Gestión Interna 0.70 3.4 Competitividad 0.55 3.5 Disponibilidad de recursos 5.00 3.6 Producto 1.95 4 Referencias Profesionales 2.40 CALIFICACIÓN FINAL 2.31
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 56 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa ASOCIACIÓN DE PRODUCTORES DE CACAO SAN CARLOS RUC 2290312399001 Figura Jurídica Asociación Legalizada ante el MAGAP Cadena de valor Cacao Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Jaime Roldós y 10 de Agosto / cabecera de La Joya de Los Sachas Teléfono de la empresa (06) 2899290 / 088074836 Fax de la empresa (06) 2899290 Dirección de correo electrónico de la persona de contacto Reny Corella [[email protected]] Dirección de la página web http://productoressancarlos.com/ec 1 Gestión de Mercado 2.15 2 Vínculo e impacto con productores 4.70 3 Gestión / Posicionamiento de la empresa 2.34 3.1 Gestión Financiera 0.30 3.2 Gestión Operativa 2.25 3.3 Gestión Interna 3.75 3.4 Competitividad 2.40 3.5 Disponibilidad de recursos 5.00 3.6 Producto 3.65 4 Referencias Profesionales 5.00 CALIFICACIÓN FINAL 3.12
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa AACRI RUC 1090110019001 Figura Jurídica Asociación Cadena de valor Café Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Apuela, calle 20 de Julio Teléfono de la empresa (593-6) 2648489 Fax de la empresa (593-6) 2648489 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.aacri.com 1 Gestión de Mercado 2.95 2 Vínculo e impacto con productores 3.70 3 Gestión / Posicionamiento de la empresa 2.33 3.1 Gestión Financiera 2.75 3.2 Gestión Operativa 1.35 3.3 Gestión Interna 1.95 3.4 Competitividad 2.20 3.5 Disponibilidad de recursos 2.00 3.6 Producto 3.65 4 Referencias Profesionales 2.30 CALIFICACIÓN FINAL 3.03
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 57 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa INAGROFA RUC 1790972852001 Figura Jurídica Sociedad Civil y Comercial Cadena de valor Quinua Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Panamericana Norte Km 14 Teléfono de la empresa (593-2) 2823880 Fax de la empresa (593-2) 2823880 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web 1 Gestión de Mercado 2.10 2 Vínculo e impacto con productores 3.30 3 Gestión / Posicionamiento de la empresa 1.13 3.1 Gestión Financiera (0.30) 3.2 Gestión Operativa 1.25 3.3 Gestión Interna 1.80 3.4 Competitividad 0.25 3.5 Disponibilidad de recursos 4.00 3.6 Producto 3.15 4 Referencias Profesionales 3.00 CALIFICACIÓN FINAL 2.33
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa CEREALES ANDINOS RUC 1792043786001 Figura Jurídica Cía. Ltda. Cadena de valor Quinua Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Calderón, Psje Sta. Fe 145 y Duchicela Teléfono de la empresa (593-2) 2821814 Fax de la empresa (593-2) 2436615 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.cerealesandinos.com 1 Gestión de Mercado 2.05 2 Vínculo e impacto con productores 3.00 3 Gestión / Posicionamiento de la empresa 2.45 3.1 Gestión Financiera 1.10 3.2 Gestión Operativa 1.40 3.3 Gestión Interna 3.55 3.4 Competitividad 3.30 3.5 Disponibilidad de recursos 4.00 3.6 Producto 3.15 4 Referencias Profesionales 5.00 CALIFICACIÓN FINAL 2.70
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 58 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa CAFÉ GALLETI RUC 1001597960001 Figura Jurídica Empresa Artesanal Productora de Alimentos Cadena de valor Café Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Ulpiano Becerra Lote 4 Teléfono de la empresa (593-2) 2827129 Fax de la empresa (593-2) 2527361 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.cafegalleti.com 1 Gestión de Mercado 2.30 2 Vínculo e impacto con productores 2.50 3 Gestión / Posicionamiento de la empresa 1.79 3.1 Gestión Financiera 2.80 3.2 Gestión Operativa 1.00 3.3 Gestión Interna 1.85 3.4 Competitividad 0.85 3.5 Disponibilidad de recursos (1.00) 3.6 Producto 4.55 4 Referencias Profesionales 1.70 CALIFICACIÓN FINAL 2.20
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa MONDEL RUC 1791394836001 Figura Jurídica Sociedad Anónima Cadena de valor Lácteos Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Km 2.5 Sangolquí - Amaguaña Teléfono de la empresa (593-2) 2336116 Fax de la empresa Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web 1 Gestión de Mercado 3.25 2 Vínculo e impacto con productores 3.30 3 Gestión / Posicionamiento de la empresa 2.76 3.1 Gestión Financiera 1.95 3.2 Gestión Operativa 1.85 3.3 Gestión Interna 4.55 3.4 Competitividad 2.50 3.5 Disponibilidad de recursos 4.00 3.6 Producto 3.15 4 Referencias Profesionales 5.00 CALIFICACIÓN FINAL 3.21
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 59 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa Asociación de productores/as de plantas secas medicinales del Ecuador AAPPSME RUC 1191705862001 Figura Jurídica Ministerio de Industrias y Competitividad MIC, acuerdo ministerial No 01 - 198 Cadena de valor Hierbas aromáticas y medicinales Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Oficinas Loja: José Antonio Eguiguren entre Ramón Pinto y Lauro Guerrero Planta: Chuquiribamba, Barrio Teléfono de la empresa 2572338 Fax de la empresa 2572338 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web http://www.horchata-lojana.com/ 1 Gestión de Mercado 1.50 2 Vínculo e impacto con productores 2.80 3 Gestión / Posicionamiento de la empresa 1.75 3.1 Gestión Financiera 0.70 3.2 Gestión Operativa 0.85 3.3 Gestión Interna 2.85 3.4 Competitividad 1.65 3.5 Disponibilidad de recursos 4.00 3.6 Producto 2.55 4 Referencias Profesionales 4.30 CALIFICACIÓN FINAL 2.24
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa Asociación de Pequeños Productores Bananeros "El Guabo" RUC 0790101006001 Figura Jurídica Asociación inscrita en el MAGAP Cadena de valor Frutas (Banano) Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Gran Colombia 23-21 y Av. Del Ejercito, El Guabo Teléfono de la empresa 07-2950088 y 07-2951046 Fax de la empresa 07-2950088 ext. 227 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.asoguabo.com.ec 1 Gestión de Mercado 2.95 2 Vínculo e impacto con productores 4.70 3 Gestión / Posicionamiento de la empresa 2.32 3.1 Gestión Financiera 0.20 3.2 Gestión Operativa 2.75 3.3 Gestión Interna 3.15 3.4 Competitividad 3.20 3.5 Disponibilidad de recursos 4.00 3.6 Producto 3.35 4 Referencias Profesionales 3.70 CALIFICACIÓN FINAL 3.50
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 60 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa Café Vélez RUC 1706891023001 Figura Jurídica Persona natural: José Nicolás Vélez Mantilla Cadena de valor Café Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Hacienda Piscingallí - San Andrés - Conocoto (Oficina: Reina Victoria N26-49 y La Pinta, Quito) Teléfono de la empresa 593 9 9828685 / 593 99679349 Fax de la empresa 2543059 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.cafevelez.com 1 Gestión de Mercado 4.30 2 Vínculo e impacto con productores 2.70 3 Gestión / Posicionamiento de la empresa 1.79 3.1 Gestión Financiera 2.80 3.2 Gestión Operativa 1.10 3.3 Gestión Interna 2.80 3.4 Competitividad 1.50 3.5 Disponibilidad de recursos (2.50) 3.6 Producto 3.15 4 Referencias Profesionales 5.00 CALIFICACIÓN FINAL 2.94
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa UNIVERSIDAD TECNICA PARTICULAR DE LOJA RUC 1190068729001 Figura Jurídica DERECHO PRIVADO SIN FINES DE LUCRO Cadena de valor Lácteos Organización con o sin fines de lucro Sin fines de lucro Dirección de la empresa San Cayetano Alto Teléfono de la empresa 07 2570 000 Fax de la empresa 07 2570 000 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.utpl.edu.ec 1 Gestión de Mercado 3.10 2 Vínculo e impacto con productores 2.85 3 Gestión / Posicionamiento de la empresa 2.65 3.1 Gestión Financiera 3.05 3.2 Gestión Operativa 2.40 3.3 Gestión Interna 3.30 3.4 Competitividad 2.00 3.5 Disponibilidad de recursos 1.50 3.6 Producto 3.30 4 Referencias Profesionales 4.30 CALIFICACIÓN FINAL 2.93
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa Federación Regional de Asociaciones de Pequeños Cafetaleros Ecológicos del Sur del Ecuador - FAPECAFES RUC 1191708772001 Figura Jurídica Federación Resolución Ministerial del Ministerio de Comercio Exterior, Industrialización y Pesca – MICIP Nro. Cadena de valor Café Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Av. Santiago de las Montañas 06-60, 2do. Piso, P.O.BOX: L-11-01-23 LOJA Teléfono de la empresa (593) 7 2583478 Fax de la empresa (593) 7 2588403 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.fapecafes.org.ec 1 Gestión de Mercado 3.55 2 Vínculo e impacto con productores 5.00 3 Gestión / Posicionamiento de la empresa 2.00 3.1 Gestión Financiera 0.45 3.2 Gestión Operativa 1.70 3.3 Gestión Interna 2.85 3.4 Competitividad 1.80 3.5 Disponibilidad de recursos 5.00 3.6 Producto 3.20 4 Referencias Profesionales 4.40 CALIFICACIÓN FINAL 3.71
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 61 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa LEENRIKE FROZEN FOOD - JUGO FACIL RUC 1707255053001 Figura Jurídica EMPRESA PRIVADA Cadena de valor FRUTAS Organización con o sin fines de lucro CON FINES DE LUCRO Dirección de la empresa Araujo E6-171 y Batodano Teléfono de la empresa 02 2411090 Fax de la empresa 02 2406132 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.jugofacil.com.ec 1 Gestión de Mercado 3.35 2 Vínculo e impacto con productores 2.95 3 Gestión / Posicionamiento de la empresa 3.04 3.1 Gestión Financiera 2.90 3.2 Gestión Operativa 2.35 3.3 Gestión Interna 4.30 3.4 Competitividad 2.20 3.5 Disponibilidad de recursos 4.00 3.6 Producto 3.30 4 Referencias Profesionales 3.60 CALIFICACIÓN FINAL 3.11
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa ASOCIACION DE PRODUCTORES DE CACAO DEL CANTON ATACAMES RUC 891717342001 Figura Jurídica Asociacion Cadena de valor CACAO Organización con o sin fines de lucro Sin fines de lucro Dirección de la empresa Km 1 1/2 via Atacames - La Union Teléfono de la empresa 06 2731233 Fax de la empresa 06 2731233 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.aprocaecuador.com 1 Gestion de mercado 1.20 2 Vínculo e impacto con productores 4.80 3 Gestión / Posicionamiento de la empresa 2.27 3.1 Gestión Financiera 2.20 3.2 Gestión Operativa 1.35 3.3 Gestión Interna 2.65 3.4 Competitividad 1.90 3.5 Disponibilidad de recursos 2.50 3.6 Producto 3.80 4 Referencias Profesionales 3.70 CALIFICACIÓN FINAL 3.09
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 62 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa CORPORACION GRUPPO SALINAS RUC 291505511001 Figura Jurídica CORPORACION Cadena de valor CACAO Organización con o sin fines de lucro SIN FINES DE LUCRO Dirección de la empresa TIBOSPUNGO S/N Y LOS INCAS - SALINAS - GUARANDA - BOLIVAR Teléfono de la empresa 03 2210005 Fax de la empresa 03 2210005 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.salinerito.com 1 Gestión de Mercado 3.85 2 Vínculo e impacto con productores 4.70 3 Gestión / Posicionamiento de la empresa 2.56 3.1 Gestión Financiera 2.20 3.2 Gestión Operativa 1.55 3.3 Gestión Interna 3.35 3.4 Competitividad 2.75 3.5 Disponibilidad de recursos 4.00 3.6 Producto 2.10 4 Referencias Profesionales 3.00 CALIFICACIÓN FINAL 3.76
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa SKS FARMS RUC 1791995112001 Figura Jurídica EMPRESA PRIVADA Cadena de valor CACAO Organización con o sin fines de lucro CON FINES DE LUCRO Dirección de la empresa JULIO ZALDUMBIDE 398 Y AV. LA CORUÑA Teléfono de la empresa 02 6001004 Fax de la empresa 02 6001004 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.pacarichocolate.com 1 Gestión de Mercado 2.65 2 Vínculo e impacto con productores 4.20 3 Gestión / Posicionamiento de la empresa 2.78 3.1 Gestión Financiera 2.25 3.2 Gestión Operativa 1.65 3.3 Gestión Interna 4.50 3.4 Competitividad 3.00 3.5 Disponibilidad de recursos 2.00 3.6 Producto 3.80 4 Referencias Profesionales 4.30 CALIFICACIÓN FINAL 3.39
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 63 ANNEX 7- NEW ANCHOR FIRM EVALUATION MATRIX
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa CAFECOM S. A. RUC 0991342060001 Figura Jurídica Sociedad Anónima Cadena de valor Café Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Km 10,5 vía a Daule, Guayaquil Teléfono de la empresa 04 6005730 al 35 Fax de la empresa 04 2110866 [email protected] Dirección de correo electrónico de la persona de contacto [email protected] [email protected] Dirección de la página web www.cafecom-sa.com 1 Gestión de Mercado 2.60 2 Vínculo e impacto con productores 3.30 3 Gestión / Posicionamiento de la empresa 2.84 3.1 Gestión Financiera 1.40 3.2 Gestión Operativa 2.20 3.3 Gestión Interna 4.70 3.4 Competitividad 3.40 3.5 Disponibilidad de recursos 4.00 3.6 Producto 3.00 4 Referencias Profesionales 5.00
CALIFICACIÓN FINAL 3.01
Peso criterios de Criterios de Selección Criterios de segundo nivel Peso Criterio Calificación segundo nivel
Nombre de la empresa ASOCIACIÓN DE PRODUCTORES DE CACAO SAN CARLOS RUC 2290312399001 Figura Jurídica Asociación Legalizada ante el MAGAP Cadena de valor Cacao Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Jaime Roldós y 10 de Agosto / cabecera de La Joya de Los Sachas Teléfono de la empresa (06) 2899290 / 088074836 Fax de la empresa (06) 2899290 Dirección de correo electrónico de la persona de contacto Reny Corella [[email protected]] Dirección de la página web http://productoressancarlos.com/ec 1 Gestión de Mercado 30% 100% 2.15 2 Vínculo e impacto con productores 30% 100% 4.70 3 Gestión / Posicionamiento de la empresa 35% 100% 2.34 3.1 Gestión Financiera 30% 100% 0.30 3.2 Gestión Operativa 15% 100% 2.25 3.3 Gestión Interna 15% 100% 3.75 3.4 Competitividad 20% 100% 2.40 3.5 Disponibilidad de recursos 10% 100% 5.00 3.6 Producto 10% 100% 3.65 4 Referencias Profesionales 5% 100% 5.00
CALIFICACIÓN FINAL 3.12
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 64 Peso criterios de Criterios de Selección Criterios de segundo nivel Peso Criterio Calificación segundo nivel Nombre de la empresa ENFP TROPICANO PRODUCTS S.A. RUC 1792082897001 Figura Jurídica Sociedad Anónima Cadena de valor Frutas procesadas Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Av. Mariscal Sucre N 70-158 y Machala Teléfono de la empresa (5932) 2498771 – 2493834 - 091682135 Fax de la empresa (5932) 2493823 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.tropicanoproducts.com.ec 1 Gestión de Mercado 30% 100% 3.30 2 Vínculo e impacto con productores 30% 100% 2.45 3 Gestión / Posicionamiento de la empresa 35% 100% 3.82 3.1 Gestión Financiera 30% 100% 3.35 3.2 Gestión Operativa 15% 100% 3.30 3.3 Gestión Interna 15% 100% 5.00 3.4 Competitividad 20% 100% 4.35 3.5 Disponibilidad de recursos 10% 100% 2.00 3.6 Producto 10% 100% 5.00 4 Referencias Profesionales 5% 100% 3.60 CALIFICACIÓN FINAL 3.24
Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa DEPRODEMAR CIA LTDA RUC 891710887001 Figura Jurídica COMPAÑÍA LIMITADA Cadena de valor PESCA Organización con o sin fines de lucro CON FINES DE LUCRO LOS RIOS S/N ENTRE BATALLON MONTUFAR Y PANAMA - CIUDAD DE Dirección de la empresa ESMERALDAS Teléfono de la empresa 593-6-2451878 Fax de la empresa 593-6-2727035 Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web NO 1 Gestión de Mercado 3.85 2 Vínculo e impacto con productores 3.05 3 Gestión / Posicionamiento de la empresa 2.83 3.1 Gestión Financiera 2.10 3.2 Gestión Operativa 2.50 3.3 Gestión Interna 3.45 3.4 Competitividad 2.25 3.5 Disponibilidad de recursos 4.00 3.6 Producto 4.55 4 Referencias Profesionales 5.00 CALIFICACIÓN FINAL 3.31
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 65 Criterios de Selección Criterios de segundo nivel Calificación
Nombre de la empresa PRODUCTOS MINERVA CIA. LTDA. RUC 1790014800001 Figura Jurídica Cía. Ltda. Cadena de valor Café Organización con o sin fines de lucro Con fines de lucro Dirección de la empresa Panam. Sur Km 11 1/2 Quito Teléfono de la empresa 2690 758 - 60 Fax de la empresa 2690144 [email protected] Dirección de correo electrónico de la persona de contacto [email protected] Dirección de la página web www.productosminerva.com 1 Gestión de Mercado 2.05 2 Vínculo e impacto con productores 1.20 3 Gestión / Posicionamiento de la empresa 2.58 3.1 Gestión Financiera 1.65 3.2 Gestión Operativa 2.50 3.3 Gestión Interna 4.50 3.4 Competitividad 3.80 3.5 Disponibilidad de recursos (1.00) 3.6 Producto 3.75 4 Referencias Profesionales 5.00
CALIFICACIÓN FINAL 2.13
PRODEL QUARTERLY REPORT – October 1, 2009 through December 31, 2009 66
ANNEX 8. ANALYSIS OF PROJECT EXPENSES BY GEOGRAPHICAL AREA Zamora PROVINCE Imbabura Carchi Esmeraldas Orellana Napo Sucumbíos El Oro Loja Chinchipe Expenses by $385,030 $504,328 $733,719 $300,004 $112,973 $640,505 $278,359 $716,540 $273,049 Province SIERRA ZONE ESMERALDAS AMAZONIA SOUTH NORTE Expenses by $889,358 $733,719 $1,053,482 $1,267,948 Zone
TOTAL 3,944,507