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POTATO CHAIN STUDY FAO.ESAE-CIP Project

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POTATO CHAIN STUDY FAO.ESAE-CIP Project POTATO CHAIN STUDY FAO.ESAE-CIP Project With contributions from producers participating in 3 experiences in the Central Ecuadorian Sierra Region Synthesis done by Lorena Mancero February 2007 INDEX INDEX 2 ABBREVIATIONS 4 EXECUTIVE SUMMARY 5 I. THE POTATO IN ECUADOR 6 II. MAP OF THE PRODUCTIVE CHAIN 12 III. ANALYSIS OF THE POTATO CHAIN THROUGH THE EXPERIENCES OF THREE SMALL PRODUCER BUSINESSES 16 IV. EXPERIENCE OF CONPAPA IN TUNGURAHUA 18 V. THE EXPERIENCE OF THE EPAL IN CHIMBORAZO 28 VI. EXPERIENCE OF THE COMMERCIALIZATION OF FARMERS´ PRODUCTS COMPANY OF MULALILLO - COTOPAXI 36 VII. CONCLUSIONS 45 7.1 The barriers that make it difficult for farmers to enter into the market 45 7.2 Elements that facilitate the process of entering into the market 45 7.3 Environmental impacts of these processes 46 Analysis of the Potato Productive Chain in Ecuador, 3 case studies. 2 Index of Illustrations ILUSTRATION NO. 1: YIELD BY PRODUCTION AREAS AND VARIETIES PLANTED ............................................8 ILLUSTRATION NO. 2: POTATO CHAIN IN ECUADOR ....................................................................................13 ILLUSTRATION NO. 3: LOCATIONS OF THE THREE EXPERIENCES TO BE ANALYZED .....................................17 ILLUSTRATION NO. 4: CONPAPA OF TUNGURAHUA POTATO CHAIN ...........................................................21 ILLUSTRATION NO. 5: FLOWCHART OF THE CONPAPA COMMERCIALIZATION ............................................25 ILLUSTRATION NO. 6: FLOWCHART OF THE PRODUCTION OF CERTIFIED SEED IN CHIMBORAZO .................30 ILLUSTRATION NO. 7: EPAL – CHIMBORAZO POTATO CHAIN ....................................................................31 ILLUSTRATION NO. 8: MAP OF THE POTATO CHAIN OF THE NEW HOPE ASSOCIATION IN MULALILLO ........38 Index of Tables TABLE NO. 1: CONPAPA ASSOCIATES PER PLATFORM .................................................................................18 TABLE NO. 2: CHARACTERISTICS OF THE CONPAPA ZONE ..........................................................................19 TABLE NO. 3: DESCRIPTION OF THE TRADITIONAL AND INDUSTRIAL CULTIVATION SYSTEMS ....................22 TABLE NO. 4: CONPAPA PRODUCTION PLANNING IN 2006 ..........................................................................23 TABLE NO. 5: CONPAPA MARKET DATA IN 2006.........................................................................................24 TABLE NO. 6: COMMERCIALIZATION CHANNELS FOR POTATOES IN TUNGURAHUA ....................................26 TABLE NO. 7: BOTTLENECKS PER LINK OF CONPAPA TUNGURAHUA ..........................................................27 TABLE NO. 8: DESCRIPTION OF THE ZONE OF INFLUENCE OF EPAL............................................................29 TABLE NO. 9: PRODUCTIVE SYSTEM BEFORE AND AFTER THE IRRIGATION SYSTEM (1997) IN THE LICTO ZONE ..................................................................................................................................................30 TABLE NO. 10: DESCRIPTION OF THE POTATO CULTIVATION SYSTEM BEFORE AND AFTER THE CONSTITUTION OF EPAL (2002)........................................................................................................32 TABLE NO. 11: COMMERCIALIZATION SERVICE COSTS OF EPAL PAID BY THE PRODUCERS ........................34 TABLE NO. 12: POTATO COMMERCIALIZATION CHANNELS IN CHIMBORAZO ..............................................35 TABLE NO. 13: BOTTLENECKS PER LINK OF THE EPAL CHIMBORAZO POTATO CHAIN ...............................35 TABLE NO. 14: DESCRIPTION OF THE MULALILLO ZONE ............................................................................37 TABLE NO. 15: PRODUCTIVE SYSTEM IN MULALILLO ................................................................................38 TABLE NO. 16: CHARACTERISTICS OF THE CULTIVATION SYSTEM BEFORE AND AFTER ..............................41 TABLE NO. 17: SALES VOLUME OF THE NEW HOPE COMPANY ...................................................................42 TABLE NO. 18: INDUSTRY QUALITY STANDARDS ........................................................................................43 TABLE NO. 19: BOTTLENECKS PER LINK IN THE MULALILLO POTATO CHAIN .............................................43 Index of Graphics GRAPHIC NO. 1: ECUADOR – POTATO PRODUCTION , AREA HARVESTED AND YIELD .....................................6 GRAPHIC NO. 2: RELATIONSHIP BETWEEN THE NUMBER OF PRODUCERS AND THE AREA PLANTED ...............7 GRAPHIC NO. 3: THE COUNTRY ’S MAIN PRODUCTION ZONES .......................................................................7 GRAPHIC NO. 4: SEASONAL NATURE OF THE HARVESTS (H AS ).....................................................................8 GRAPHIC NO. 5: POTATO EXPORTS IN MT ....................................................................................................9 GRAPHIC NO. 6: IMPORTS IN MT..................................................................................................................9 GRAPHIC NO. 7: NATIONAL DEMAND FOR POTATOES BY SECTOR (MT)......................................................10 GRAPHIC NO. 8: AVERAGE YEARLY POTATO PRICE IN WHOLESALE MARKETS (USD/ QQ )...........................10 GRAPHIC NO. 9: 2005 WHOLESALE PRICE BY POTATO VARIETY (USD/ QQ ).................................................11 GRAPHIC NO. 10: 2006 MONTHLY CONPAPA SALES VOLUME AND SALE PRICES .........................................24 GRAPHIC NO. 11: PRICE BY VARIETY OF POTATO IN THE AMBATO WHOLESALE MARKET ...........................25 GRAPHIC NO. 12: MONTHLY CONSUMER PRICE OF CHOLA VARIETY IN AMBATO , 2006..............................26 GRAPHIC NO. 13: 2006 MONTHLY EPAL SALES VOLUME AND PRICES .......................................................33 GRAPHIC NO. 14: PRICES BY POTATO VARIETY IN THE RIOBAMBA WHOLESALE MARKET ..........................34 GRAPHIC NO. 15: POTATO COMMERCIALIZATION STATISTICS . COMMUNITY COMPANY OF MULALILLO ....42 Analysis of the Potato Productive Chain in Ecuador, 3 case studies. 3 ABBREVIATIONS APUs Agricultural Production Units BNF Banco Nacional de Fomento / National Bank for Progress CESA Central Ecuatoriana de Servicios Agrícolas / Ecuadorian Center for Agricultural Services CIP Centro Internacional de la Papa / International Potato Center CONPAPA Consorcio de Productores de Papa / Consortium of Potato Producers CORPOAMBATO Corporación Ambato / Ambato Corporation COSUDE Agencia Suiza para el Desarrollo y la Cooperación / Swiss Cooperation for Development EPAL Empresa de Productores Agrícolas de Licto / Agricultural Producers Business of Licto Chimborazo FORTIPAPA Proyecto de fortalecimiento del rubro papa / Potato Strengthening Project FAO Organización de las Naciones Unidas para la Agricultura y la Alimentación / United Nations Food and Agriculture Organization Ha Hectares IEDECA Instituto de Ecología y Desarrollo de las Comunidades Andinas / Institute of Ecology and Development of Andean Communities IMP Integrated Pest Management INIAP Instituto Nacional Autónomo de Investigaciones Agropecuarias / National Institute for Agricultural and Livestock Research (INIAP) MAG Ministerio de Agricultura y Ganadería del Ecuador / Ministry of agricultura and Livestock of Ecuador MCCH Maquita Cushunchi: Commercializing as Brothers. Foundation for the support of the commercialization of small-scale producers MT Metric Tons NGOs Non Governmental Organizations PODER Productores Organizados por el Desarrollo Empresarial Rural / Producers Organized for Rural Business Development QQ Quintal – Hundredweight or one hundred pounds SICA Servicio de Información y Censo Agropecuario / Agricultural Information Service and Census Analysis of the Potato Productive Chain in Ecuador, 3 case studies. 4 Executive Summary he present study is the first stage of the project titled “Facilitating small producers access to the new agricultural economy” , which is being executed by the United Nations Food and Agriculture Organization (FAO) and the International Potato Center (CIP). TTheT study is being conducted on the potato sector in Bolivia and Ecuador and it contemplates three main phases and specific analysis in each of the two countries. The first phase is the mapping of the potato value chain in three case studies; the second phase begins with the design of surveys which will be applied to a sample of producers and in the market; and the third and conclusive phase will define the parameters of public policies in different aspects. The specific objective of the first phase is to conduct an analysis of the value chain of the potato sector; the study focuses on three specific experiences where small producers have been linked to productive chains. The study emphasizes the role of platforms and client relationships with restaurants, chicken restaurants, industries and supermarkets; the barriers which farmers encounter when they attempt to link up to markets or become part of or gain access to the chain; and the process of integrating into the chain. The analysis has a general description of the potato its the productive chain in Ecuador, reiterating its importance due to the fact that it consists of more than eighty thousand producers, of which 50% are considered small-scale (with landholdings of less than 2 hectares) to the productive chain. Historically small producers have worked according to an inefficient and individualist model, however, thanks to associativity and support from NGOs and projects some of these farmers have been able to associate and coordinate their actions
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