Fintrac Jalapeño Program Aids Honduran Farmers

Honduras (March 18, 2004) - In 2003, growers participating in Fintrac/CDA's Jalapeño Program sold 15 million pounds of peppers with a gross sales income of $2.75 million, an increase of 320 percent over 2001 levels. During the same period, average net income of participating farmers receiving Fintrac assistance has increased from $1,055/hectare to $6,650/hectare. In 2003, 93 participating producers with 145 hectares averaged yields of 93,000 lbs/hectare compared with 42,164 lbs/hectare just three years earlier. Increased yields and efficiency have reduced the unit cost of production by 30 percent.

Jalapeño pepper was the first fixed price contract production program developed by Fintrac in Honduras. The jalapeño program is now in its third year and continues to create benefits for producers and processors throughout the country. "Jalapeño has been the stepping stone for growers to upgrade production systems and invest in infrastructure," says Fintracâs Production Manager, Ricardo Lardizabal, "The emphasis on competitiveness and professionalizing operations has also opened doors for growers to expand with new crops and new buyers."

Fintrac's assistance has enabled farmers and processors to increase the size of their operations, and this has resulted in increased employment. In 2003, 147 hectares of jalapeño production generated the equivalent of 480 jobs in eight Honduran departments. With the introduction of high-value rotation crops, this employment has become permanent. The major Honduran processor of jalapeño peppers now employs 500 persons year round, while new processors have hired 100 additional employees since 2002. The total amount of wages paid by jalapeño growers between 2001 and 2003 is estimated at over $990,000. The growth in grower and processor operations has also had positive impact on the agribusiness input, service, and BDS sectors.

To increase farmer incomes and production efficiency, CDA has implemented the use of Good Agricultural Practices and made integrated pest management, soil preparation, sticky traps, live barriers, drip irrigation, and fertigation standard practice for participating jalapeño farmers. Disease control systems, record keeping assistance, and cost control systems have also been implemented where necessary. In 2003, growers sold 14 million pounds of peppers for processing. Fintrac has worked with jalapeño processors on products including frozen (IQF) peppers, pickled peppers, stuffed peppers, and "poppers". Over 60 percent of jalapeño peppers produced by Fintrac clients are processed into jalapeño "poppers", which are sold throughout the world. Other end products include pepper sauces, pickled peppers, dried peppers and jalapeño cheeses. Fintrac is actively working with large scale processors and microprocessors to expand the product lines using the jalapeño base. Fintrac has also worked to train processors and create new market channels for emerging companies. As a result of market research and market visits, the number of buyers of fresh and processed jalapeÛos has increased, and CDA clients now sell to Guatemalan processors and to local fresh markets in Honduras, El Salvador, and Nicaragua. In 2003, several new Guatemalan and Salvadoran buyers began purchasing from Fintrac clients and more international contracts are expected in 2004.