Contribution to strengthen agricultural production in Ecuador

(Quito, May 30, 2008).- The Andean Development Corporation approved a non-reimbursable technical cooperation grant to build up the vegetable-fruit cluster in Ecuador by implementing a supplier development scheme. The model uses training, technical assistance and development of a supplier model to improve the competitiveness of 50 small agricultural producers in Pichincha, Pastaza, Manabí, Tungurahua and Cotopaxi along with their products such as chili, palm hearts, blackberry, guava, strawberry and pineapple.

The project, which is part of the CAF Competitiveness Support Program (PAC), follows the example of successful preliminary experiences in Venezuela and Peru aimed at strengthening relations between members of the chain, and developing the proficiency of small producers.

Ecuadorian small agricultural producers will benefit from the participation and technical and commercial support of SIPIA, a leading company in the market, which plans to expand its capacity to respond to potential markets by reinforcing its supplier chain through improved commercial relations in the long term.

The project will facilitate identification and implementation of strategic actions to promote the sustainable economic development of small agricultural producers with potential for growth and generation of employment. The initiative will create economies of scale (associativity or cooperation between producers) which will help reduce the market distortions that prevent producers from continuous participation in the market, and gain more equitable and sustained access to its benefits by improving productivity, product quality and production volumes.