Competitive, inclusive and sustainable development of supply chains for coffee, fino de aroma cocoa and cashews producers

Most producers in the Departments of El Paraíso, Valle and Choluteca do not manage to make their businesses successful, due principally to exploitation, inadequate harvesting practices and poor knowledge of the market. Fino de aroma cocoa is an alternative crop for coffee growers in El Paraiso, where 51,200 hectares of coffee plantations supply 20% of the country's total crop. Furthermore, there is an unsatisfied demand for cocoa in the domestic and international markets; this also applies to cashews, which have  economic and environmental potential for the south of the country.  

 
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El Paraíso
13.908864
-86.555101
Project duration
2017 - 2021
Financed by
  • European Union EU

The project

The general aim of PROGRESA is to help to reduce poverty and uncertain food supply for small and medium-sized producers and agricultural workers by improving the competitiveness of the coffee, cocoa and cashew supply chains in the Departments of El Paraíso, Choluteca and Valle, while encouraging socio-economic inclusion and equality for 10,200 producers and 16,000 employees of small and medium-sized companies.
 

Principal activities

The project concentrates on improving management of the value chains for coffee, cocoa and cashews through an inclusive public-private dialogue aimed at reducing the risks and increasing the benefits to producers. To achieve this, 200 leaders and 71 organisations will be given training in new business models that will be established with domestic and international purchasers and that will encourage compliance with economic, social and environmental standards, thus reducing commercial and financial risk for producers and grass-roots organisations; as well as stimulate investment from the private and public sectors and financial institutions.

The project also facilitates access to innovative gender-considerate services (financial services such as leasing, reciprocal guarantees, insurance and non-financial services) and profitable, climate-aware farming practices such as soil and water management, nutrition, forestry and genetic adaptations. PROGRESA maximises the replication and adoption of good practices through knowledge generation, communication and learning based on evidence gathered from monitoring, impact evaluation and participatory reflection.

Project partner

  • Honduran Coffee Institute
  • Municipality of Danlí, department of El Paraíso
  • Municipality of Namasigüe, department of Choluteca
  • Molinos de Honduras
  • Ministry of Agriculture and Livestock

Results

2019

  • 2,200 jobs generated taking into account permanent and temporary jobs in the harvesting season.
  • Molinos de Honduras, CAFEPSA, CECRUCSO and CAFEUNO maintain inclusive business models with organisations in the department. The capacities of members of these organisations have been strengthened, with training provided to 10,557 producers (22% women) in the coffee chain, 266 producers (21% women) in the cocoa chain and 1,243 producers (46% women) in the cashew chain.
  • Producer organisations together with the above-mentioned companies are including the organic, Fair Trade, SPP, UTZ, Manos de Mujer and Café Practices labels.
  • Established inclusive business models with international buyers that encourage compliance with economic, social and environmental standards.
  • The Molinos de Honduras company (project partner) provided financing to 87 producer organisations for a value of 13.2 million Lempiras.
  • Productivity increased by 12.59% over the previous year with an average of 13.68 quintals/dry parchment.
  • Improved chain governance with inclusive and effective public-private dialogue and consultation platforms.
  • Improved stakeholder performance, processes, relationships, cooperation, innovation, transactions and profitability in a sustainable manner.
  • Managed knowledge, communication and learning, based on evidence generated by monitoring and impact assessment and participatory reflection that maximises replication and scale of adoption of good practices.
  • Annual production increased by 15.25% over the previous year 317,305 quintals/dry parchment.