Inclusion, empowerment, and the social impact of Ecuador’s native

potato value chain

International Food Security Dialogue 2014: “Enhancing Food Production, Gender Equity, and Nutritional Security in a

Changing World” May 2014

Leah Buckley

Overview

Ecuador’s Native Potato Value Chain

Study Objectives

Methodology

Characterisation of Participants

Overview of results

Challenges and Recommendations

Conclusion

Ecuador’s Native Potato Value Chain

CSR and pro-poor value chain development can help to realign market activities to improve the participation of marginalized actors and the benefits they receive.

However, they often fail to fully integrate farmers as active stakeholders in the value chain

Inalproces: Export-oriented smallholder-linked enterprise, produces chips made from two native potato varieties (yana shungo and puca shungo), sourced from smallholder farmers in the Ecuadorian highlands

CONPAPA-Tungurahua (Consortium of Smallholder Potato Producers): association of smallholder potato farmers, and sole supplier of the native potatoes used by Inalproces

Study Objectives

To understand and evaluate the perceptions of benefits among smallholder farmers, with respect to their participation in the native potato value chain.

To relate the results with those of other value chain actors, with an emphasis on value chain governance, participation, trust, and gender empowerment, to view how the value chain can maximize its contribution to poverty alleviation and food security in the Ecuadorian highlands.

Research Questions:1) What are the benefits associated with participation in the

value chain, according to the perceptions of the farmers? Are there areas that need greater attention to strengthen inclusion among farmers?

2) Is participation in the value chain related to the level of empowerment among women?

3) What options are identified by value chain actors to improve organizational/operative capacity, innovation, and to take advantage of new market opportunities?

Methodology

Literature Review

Field work: 80 surveys with participants and non-

participants of CONPAPA and the value chain

Focus groups with CONPAPA and non-participants to explore gender, minimum assets, barriers to entry

Data Analysis Collective Action Framework (Devaux et

al. 2009); adapted to strengthen its representation of inclusive governance, gender, and social impacts (Thiele et al. 2011; IFPRI 2012; Donovan & Stoian 2012)

Excel, SPSS

Recommendations & Final Report

Characterization of participating farmers

14 women, 23 men

Averages: Age: 46 years Size of plot dedicated to native

potato production: 0.5 hectares Time involved with value chain: 1.5

years 64% report a male head of

household 84% have titled land 51% of titled land is in the name of

both spouses; 41% the man; 5% the woman; 3% parents

All farmers combine potato cultivation with other agricultural and non-agricultural activities

Result 1.1. Benefits perceived through participation in the value chain

Fixed and higher price offered by Inalproces, the guaranteed market

83% of men and 71% of women have experienced an increase in income

New income has been invested in potato cultivation, seed purchase, and spending in health, education, and nutrition

Participants recorded higher levels of diversification in their daily diets than non-participants

95% of farmers expressed an interest in continuing to cultivate native potatoes

However…

• Only 65% of farmers are satisfied with the price they currently receive for the native potatoes.

• Farmers still consider native potatoes risky because of the high quality requirements and absence of markets outside of Inalproces

Result 1.2. Trust

Index included questions such as: Do you feel that the information

that you receive is: a) Complete; b) Transparent; c) On time?

Do you think that Inalproces is a just enterprise?

Lack of trust is the result of poor communication and misunderstanding:

CONPAPA’s presence and relationship with farmers is much stronger and more direct

Inalproces’ high quality demands are not met with technical, on-the-ground support, i.e. confusion of climatic damages with disease

Inalproces feels that CONPAPA does not always communicate to farmers (i.e. small potatoes)

• Levels of trust in CONPAPA were higher than Inalproces (Index average 0.79 versus 0.68)

• A significant relationship was found between levels of trust and plot of land dedicated to native potato production

Result 1.3. Governance

Within Value Chain:

Farmers are not just suppliers but participate and are informed in decision-making, contract negotiations, and the activities of Inalproces

Within CONPAPA:

Monthly obligatory meetings communicate the activities of the consortium Internal and external decisions are

always approved by the assembly of members

87% of farmers participate always or almost always in meetings and workshops

84% of farmers report feeling that they have a space to express their needs and opinions

Although there are high levels of participation in general…

• Farmers feel the meetings are time consuming, especially considering transportation, and are not always productive

• Farmer engage less during decision-making

• Gaps in communication: 30% of farmers perceive that the information they receive is not complete, transparent, and does not arrive on time

Result 1.4. Participation

Factors that limit farmers from increasing

production Only one market – Inalproces

Limited access to land, credit, labour, technical support

Risks of loss of harvest: climatic factors, quality requirements and post-harvest care

Women commented: Physically demanding and more

time consuming than other crops

Income diversification important to guarantee income and food security

Barriers to entry for non-participants

Minimum knowledge of CONPAPA, the value chain, and rules of entry

Lack of irrigation systems

High costs of inputs associated with potato production

No access to technical assistance to achieve high quality product

Lack of experience organizing and directing a formal agricultural association

Result 1.5. Gender, participation, and empowerment

‘Feminization of agriculture’ in Latin America (Deere 2005)

Examined women’s empowerment through questions on: Decision-making in household and farm

activities Participation and leadership roles in

associations Recognition of role in potato production

Women involved in CONPAPA have higher levels of participation in decisions related to farm activities

High levels of participation in CONPAPA and other associative activities

Women are recognized for their role in potato cultivation, but are not remunerated equally

However…• Women find it more difficult

to participate in meetings and workshops

• There are significant differences between women from different communities

Objective 2: Business skills capacity

The market for native potatoes is increasing, but there is insufficient supply to meet the demand

There is interest among farmers to participate in business skills capacity workshops (89%), especially commercialization (70%)

However… CONPAPA lacks a business

culture The concentration of

responsibility prevents the consortium from successfully engaging in other activities, i.e. innovation.

CHALLENGES AND RECOMMENDATIONS

Challenge 1: Improve the efficiency of the value chain, with the capacity for growth

Challenge:

Communication between actors is not sufficiently clear nor structured. This provokes confusion, doubt and misunderstanding which undermine the value chain’s efficiency

Recommendations:

An improved and structured system of communication for farmers, using tools and materials that are accessible to farmers. Reinforce these materials periodically during meetings and workshops

Improve collaboration and plan specific objectives to improve innovation, including workshops, monitoring and evaluation, etc.

Workshops on governance structures, the roles of each value chain actor, and the importance of active participation

Challenge 2: Increase production and quality to respond to market demands

Challenge:

Inalproces feels frustrated that their expansion is limited despite growing international demand. Farmers say they do not have the resources necessary to increase production. The sentiment of risk and insecurity is prevalent.

Recommendations:

Support systems for investment and production, including: Coordination between actors to improve quality and post-

harvest management Agricultural technician to support quality control Loans/system of credit to help with investment

Challenge 3: Growth in value chain through increase in participating farmers

Challenge:

Despite interest among non-participants, neither CONPAPA nor Inalproces have concrete strategies to increase participation. Further, there is limited awareness of the circumstances of non-participants, especially women, that could otherwise open doors to new farmers

Recommendation (CONPAPA and Inalproces) Information campaign System of incentives through a system of traceability, in conjunction

with capacitation, monitoring and evaluation, awards

Recommendations (Support Institutions): Undertake a study to understand livelihood strategies adopted by

non-participants, especially women Develop a gender strategy to confront barriers to entry and minimum

assets to participate in value chains and new market opportunities

Challenge 4: Business Capacity

Challenge:

Absence of a business culture within CONPAPA limits their ability to develop and take advantage of new markets for native potatoes

The concentration of responsibility in one person, and the absence of a dedicated resource to manage business development in CONPAPA, inhibits their organizational development and prevents their reach and expansion

Recommendations:

CONPAPA: Collaborate with universities and institutions to receive interns or professionals in business and marketing

Workshops (with the support of business institutes) to build capacity in business and organizational development

Opportunity: Farmers Business School

FBS is a method of “learning by doing” to improve business capacity among farmers

The focus is flexible, depending on the needs and interests of farmers in a particular region

CIP has demonstrated experience and success with the FBS

Possible modules of FBS in the native potato value chain

1) Workshops on value chain analysis and inclusive governance: internal analysis, identification of best practices, lessons and key actions for success, etc.

2)Human Capital development: Improve coordination through systems of communication and diffusion of information

3) System of quality and monitoring: How to structure a system of traceability, through capacitation, quality control, and incentives for high quality production

4) Business capacity development at distinct levels: Principals and processes to analyze the internal potential, and take advantage of new markets through innovation

Thank you