Background – Peru is rich in mineral wealth, with gold, copper, and zinc, in particular, mined and exported by international companies.  This South American country is the world’s largest producer of fish meal, while other key export goods include sugar cane and coffee.  Since the turn of the century, the economy has been growing and has even managed to overcome the downturn resulting from the global financial crisis.  Yet, despite these successes, 40 percent of Peru’s population lives below the national poverty line, a figure which rises to 70 percent in rural areas.   These people are occupied primarily in agriculture and have yet to benefit from the remarkable economic growth also seen in this sector.   Smallholders lack the essential skills required to increase productivity.  Moreover, they all work independently instead of organize themselves into groups, which makes it difficult for them to reach new markets and obtain better prices.

Project – In the regions of Lambayeque, Piura, and Cajamarca in the northern highlands of Peru, Swisscontact is currently implementing a project which will enable smallholders to increase their income.  Together with local experts and farmers, Swisscontact has identified the production of organic bananas, organic cocoa, and two varieties of chili peppers as being particularly promising. The farmers are trained in the breeding and cultivation of the plants and, with the bananas and cocoa, organic farming methods.  They also receive support toward obtaining organic certification.  In order to access new markets and gain better prices, the smallholders have organized themselves into groups.  In this process too, they are supported by Swisscontact project staff.  Additional important training topics include dealing with financial services (loans, investments, savings, etc.), as well as access to market information and contacts to potential buyers.  In all of these areas, the project ensures that local people acquire as well as pass on their new skills to the farmers and their organizations.  700 smallholder families (ca. 3,500 people) profit directly from the project, while a further 1,600 farmers can utilize the network and the newly-acquired expertise.  The primary goal is a 10 percent increase in sales volumes for the banana, cocoa, and chili supply chains.  Thanks to the locally-established competence, this is just the beginning.