Food Security and Integrated Development: A Market Oriented Approach - Bolivia. Best Practices & Innovations (BPI) Initiative - Interaction

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1 Food Security and Integrated Development: A Market Oriented Approach - Bolivia Best Practices & Innovations (BPI) Initiative - Interaction

2 Area of intervention Municipalities: Camargo, Culpina, Incahuasi and San Lucas (over 8,000 beneficiaries)

3 Main constraints Low literacy rates Low agricultural productivity Geographical isolation Weak and underdeveloped market linkages Lack of access to water for irrigation Degraded natural resources Lack of productive infrastructure No agricultural supporting services

4 Program strategy Health and Nutrition/Wat er and sanitation Natural Resources Management (NRM) Rural Income Program (RIP)

5 TARGET POPULATION Rural income generation program Results Interventions 1. Increased productivity of marketable produce 2. Increased agriculture-related income of stallholder farmers Increase agricultural productivity Enhance market access Enhance access to financial services Improve productive infrastructure Organizational strengthening Technical Assistance Groups Producers Associations

6 Demand-driven approach C O M M U N I T Y Farmers group Farmers group Farmers group Producer associations Agricultural service centers Collection and dissemination of Information Business round-tables Contract with buyers Contract with suppliers Product quality standards Storage and processing Market Technical Assistance Supporting services Financial services Accounting and legal Product certifications Packaging Farm decision making Information Market assessment

7 From subsistence to commercial farming Subsistence farming Self consumption Occasional sales No economy of scales Low quality Inadequate use of technology No credit Demand-driven farming Production under market specifications Planned sales Economy of scales Innovative financial mechanisms to: reduce risk boost investment

8 Portfolio of promoted crops Existing crops Onion Broad Beans Peas Corn Plum Apple Grape Peaches Introduced Garlic Barley

9 Critical factors for success Demand driven approach (information) Production of high value crops Rapid results boosted private/public sector participation Project focus were beyond capacity building and facilitation of activities (roads, storage, irrigation facilities and NNRR were also important)

10 Critical factors for success Associations equipped with collecting facilities Creation of value added products using the crops promoted by the program (grape juice, broad-bean cookies, dried peaches, etc.) Provision of entrepreneurial training to increase their leaders skills to manage associations with a business approach Use of agri-business plans Facilitation of linkages between farmers and credit program tailored to their needs.

11 Evidence of success Sales through forward contracts and producers associations increased significantly from only $7,000 dollars in 2002 to almost $360,000 dollars in The average beneficiary household s income doubled between 2002 and It rose from an average annual income of $940 in 2002 to about $1,950 in 2008 (constant year 2002).

12 Evidence of success Improvements in household well-being: using increases in income to improve diets, housing improvements, keep their children in school, etc. Investing in businesses: increased income to invest in farm operations, fertilizers, improved seeds, buying animals and investing in equipment and machinery. Increases in entrepreneurship and self-reliance: outstanding improvement in their knowledge and attitudes about business, markets, profitability and competitiveness. It is this market orientation and the results that were achieved that make the Bolivian Title II IG programs noteworthy and potentially important as a model for IG programs in other countries (Title II Final Evaluation Report).

13 Thanks