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Course on Agribusiness Management for Producers' Associations Latin TRAINING MATERIALS FOR AGRICULTURAL MANAGEMENT, Course on agribusiness MARKETING management for AND FINANCE producers’ associations 8 Latin America – Case studies Editors Pilar Santacoloma Alexandra Röttger and Florence Tartanac FAO Agriculture Management, Marketing and Finance Service Rural Infrastructure and Agro-Industries Division FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2009 The mention or omission of specific companies, their products or brand names does not imply any endorsement or judgement by the Food and Agriculture Organization of the United Nations. The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. All rights reserved. Reproduction and dissemination of material in this information product for educational or other non-commercial purposes are authorized without any prior written permission from the copyright holders provided the source is fully acknowledged. Reproduction of material in this information product for resale or other commercial purposes is prohibited without written permission of the copyright holders. Applications for such permission should be addressed to: Chief Electronic Publishing Policy and Support Branch Communication Division FAO Viale delle Terme di Caracalla, 00153 Rome, Italy or by e-mail to: [email protected] © FAO 2009 iii Contents Acronyms v Acknowledgments vi Characterization of the Cocoa Chain in Colombia 1 Introduction 1 Discussion 1 Conclusion 1 Elements for a case study 2 Concluding the case study 3 The rural cheese dairies of Salinas de Bolivar in Ecuador 5 Introduction 5 Discussion 5 Conclusion 6 Elements for a case study 7 Concluding the case study 8 Situation analysis of various producers’ associations in Latin America 9 Introduction and discussion 9 Asociación de Producción y Mercadeo (ASPROME) - Valle del Cauca, Colombia 9 Associative Enterprise (SERVIYON) - Yondó, Antioquia, Colombia 9 Association of Production and Industrialization of Dairy Products (APILAC) – Pérez Zeledón, Costa Rica 10 Beekeeping enterprises in central Santa Fe, Argentina 10 Conclusion 11 Advantages 11 Challenges: 11 Elements for a case study 12 Concluding the case study 13 Contract farming in the horticultural export sector of El Bajío, Mexico 15 Introduction 15 Discussion 15 iv Conclusion 17 Elements for a case study 18 Concluding the case study 19 Precooked and frozen vegetables for the international market: La Huerta, Mexico 21 Introduction 21 Discussion 21 Conclusion 22 Elements for a case study 23 Concluding the case study 24 The agribusiness agrohortalizas 25 Introduction 25 Elements for a case study 26 Concluding the case study 27 Cuatro Pinos Cooperative Union 29 Introduction 29 Discussion 29 Conclusion 30 Elements for a case study 30 Concluding the case study 31 v Acronyms ANDI National Association of Industrialists APILAC Association of Production and Industrialization of Dairy Products ASPROME Asociación de Producción y Mercadeo COTECO Comité Técnico de las Congeladoras EPA Environmental Protection Agency FEDECACAO National Cocoa-Growers’ Federation FOODEX Food Expenditure Survey IICA Inter-American Institute for Cooperation on Agriculture INTA National Agriculture and Technology Institute OMG Operación Mato Grosso vi Acknowledgments These cases are coming from an updated and modified version of the Spanish FAO publication Curso de gestión de agronegocios en empresas asociativas rurales en América Latina y el Caribe, Agriculture Management, Marketing and Finance Service (AGSF) Training Materials for Agricultural Management, Marketing and Finance Series CD-ROM No. 5., FAO 2005. The Spanish version was prepared by Margarita Baquero and Marvin Blanco, FAO Consultants and edited by Hernando Riveros, Pilar Santacoloma and Florence Tartanac (AGSF). Credit goes to Pilar Santacoloma (AGSF) for the cover photographs. A special thanks also goes to Anne Braun, FAO Consultant, for translating the Spanish manual into English, Malcolm Hall, FAO Consultant, for proofreading and Lynette Chalk, FAO Consultant, for layout and desktop publishing. 1 Characterization of the Cocoa Chain in Colombia INTRODUCTION1 Associations in Latin America Case studies for Producers' There are three main links in Colombia’s cocoa chain: cocoa-bean production; cocoa bean marketing; and the chocolate and confectionery processing and producing industry. This supplies three types of product to different, clearly- defined markets: i) primary products: cocoa beans; ii) intermediate products: cocoa butter, cocoa powder and cocoa mass, and iii) end-products: eating, coating and confectionery chocolate, etc. DISCUSSION Four main types of private economic operator are involved in the chain: i) farmers (approximately 25 000 producers); ii) stockpilers (buyers who act as representatives of processing companies); iii) exporters (who have an ad hoc involvement, since Colombia does not generate major supplies for export), and iv) industry (the two largest firms process around 90 percent of the cocoa beans). Support institutions and service providers are also linked to the cocoa chain (producers’ and industrialists’ unions, and research, extension and human resource training institutions). In 2000, the chain processed 36 351 metric tons of cocoa, to produce such products as cocoa powder, coating chocolate, eating chocolate, cocoa butter and confectionery containing chocolate. Total gross production was worth around US$170 million in 2000, of which 47 percent represented added value for the industries. CONCLUSION As a result of promoting the chain concept in Colombia, spearheaded by the Ministry of Agriculture with the support of the Inter-American Institute for 1 Agrocadenas (2004). Descripción de la Cadena Cacao. Colombia. Available in Spanish at http://www. agrocadenas.gov.co/cacao/cacao_descripcion1a.htm 2 Course on agribusiness management for producers’ associations Cooperation on Agriculture (IICA), the main stakeholders in the cocoa chain signed a Competitiveness Agreement in October 2001. This involved the creation of National Cocoa Council to implement the Agreement. The unions in the Council representing cocoa producers and processors are: the National Cocoa- Growers’ Federation (FEDECACAO) and the Food Industry Chamber of the National Association of Industrialists (ANDI). At a later date, Regional Councils were created in the two main cocoa- producing areas of Colombia (Antioquia and the Northeast Region), which in turn established Regional Competitiveness Agreements. The key elements of these Agreements are the implementation and financing of research activities in the agricultural component of the chain and in plant health, as well as the development and application of a national technical standard to serve as a reference for setting buying and selling prices for cocoa beans. Elements for a case analysis Based on your personal experience, consider the following questions on the proposed case: 1. Do you think that cocoa producers play a major role in setting prices for buying and selling cocoa beans? Why? 2. What do you consider to be the main advantages in Colombia’s cocoa-chain stakeholders getting organized and coordinating their activities? 3. Why do you think it was possible for a Competitiveness Agreement to be concluded between actors who are apparently at loggerheads and among whom there appears to be a complete imbalance? 4. Which similarities and differences do you find between the situation in the case study and what is happening in the chain to which your associative rural enterprise belongs? Bear in mind that at the end of the unit you will be asked to answer the same questions in the light of the new knowledge you will have acquired. Characterization of the Cocoa Chain in Colombia 3 Concluding the case study Having compared your prior knowledge with the subject content of the unit, answer the following questions making optimum use of the new knowledge you have acquired: 1. Do you think that cocoa producers play a major role in setting prices for buying and selling cocoa beans? Why? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… 2. What do you consider to be the main advantages of Colombia’s cocoa-chain stakeholders getting organized and coordinating their activities? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… 3. Why do you think it was possible for a Competitiveness Agreement to be concluded between actors who are apparently at loggerheads and among whom there appears to be a complete imbalance? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… 4. Which similarities and differences do you find between the situation in the case study and what is happening in the chain to which your associative rural enterprise belongs? ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… ……………………………………………………………………………………… 5 The rural cheese dairies of Salinas de Bolivar in Ecuador Case studies for Producers' Associations in Latin America Case studies for Producers' INTRODUCTION
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