Rural Value Chain Development Program

Overview

We develop rural agricultural value chains, so that marginalized and poor farmers have better inclusion in local, domestic and international markets.  We invest in wealth-creating enterprises and projects that provide products and services such as agricultural and business training, access to capital and access to markets to marginalized farmers.

The Context

What is a Value Chain? – “A value chain describes the full range of activities required to bring a product or service from prodution to user.”¹  It is basically the total business infrastructure that supplies things such as inputs (seed, fertilizer, etc.), services (agronomy, banking, etc.), post harvest processing, and final marketing (local, domestic or internatinal).  

Why is it Important? – For many farmers living in poor rural areas, participation in the value chain is limited.  This can be due to small size, distance to markets, or sytematic exclusion.  Developing inclusive value chains that allow marginalized farmers to participate profitably is important to help lift them out of poverty.  Also, building up the rural value chains can create jobs for the non-farming rural population.

Historical Experiment

Mombachito Coffee Roaster and Grinder – Our first attempt at business development was at the Mombachito lancbank.  We financed a building and the equpment for roasting, grinding and packaging coffee.  The project was successful and gives us some experience as we move forward with our current projects.

Current Projects

Cocoa Industry Development (ACJ) – With our partner Asociación Cristiana de Jóvenes (ACJ), we are helping to finance and develop a cocoa nursery and processing facility.  The goal is to produce seedling trees to increase planted acreage of cocoa in the area and then once the trees are bearing to purchase raw cocoa from the farmers, ferment and dry it so it is ready for transport to markets.

Improving Crop Quality, Profitability and Access to Markets (PAC) – With our newest partner, Asociación Pueblos en Acción Comunitaria (PAC), we are in the relationship building and research phase.  We are currently exploring ways that we can partner together to improve crop quality, farmer access to new markets and farmer profitability.