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NEWS RELEASES

Honduran Exports of Cucumber and Butternut Squash Increase $2.5 Million in 2002



La Lima, Honduras (May 18, 2002)
- As the 2001/2002 cucumber and squash season winds down in Honduras, reports from Fintrac CDA clients indicate significant increases this year in yields and exports as a result of new investment and improved production and postharvest practices. Cucumber exports for the 2001/2002 season reached an all time high of $7.37 million, up $1.76 million (32 percent) from $5.6 million for the 2000/2001 season. Butternut squash exports for the 2001/2002 season were $1.82 million, up $0.73 million (67 percent) from $ 1.09 million for the previous season. The combined increase in new export earnings for these two crops was $2.5 million, meeting Fintrac CDA targets.

These sales results were obtained despite a reduction in cucumber market prices. Average prices for this season were $2.00/carton lower than the previous season due to market conditions. Lower market prices were offset by increased yields. As a result of improved production practices and new hybrids, the average cucumber yields this season increased by 19 percent over the previous season. Honduras was the only foreign supplier to record an increase in cucumber exports to the US during the 2002 season - Mexican exports to the US decreased 24 percent, with even more dramatic decreases recorded by the Dominican Republic (40 percent) and Guatemala (78 percent).

Cucumbers and squash are two of the selected nontraditional export crops that the Fintrac CDA project has been supporting during the present and past seasons. Technical support to the growers and exporters has been ongoing since the project began in February 2000. New grower/exporters have also entered the business over the last two years. Activities are presently centered around five medium-sized growers/exporters with twenty small outgrowers.

Fintrac CDA production specialists have been providing technical assistance and training throughout the entire production, harvesting and packing processes to all of the export companies for both cucumber and squash. This has covered technical support, information and problem resolution, together with the implementation of new production technologies and practices that have helped the companies improve yields and product quality. Some of the specific activities carried out with these producers and exporters have included integrated pest management practices, land preparation, harvesting practices and equipment, food safety and process flow improvements. In addition, Fintrac CDA marketing specialists tracked prices and volumes for these crops in the US market on a weekly basis and distributed this information to all exporters.

Activities and infrastructure improvements made in 2000 and 2001 have resulted in excellent investment returns. Cold room expansion with an existing producer/exporter and packhouse construction for a new grower group have contributed to more than $1.43 million in new exports since the 2000 season. Fintrac CDA invested $29,000 in this infrastructure with the clients contributing $22,600. This packhouse also enabled first time exports by eight growers in the region of El Sifon in Comayagua.

The return on investments that were cost shared with the two lead partners in 2000 has been impressive. The coldroom investment expanded packing capacity from 45 containers/week to 70 containers per week. This allowed the company to increase its area from 70 hectares during the 1999-2000 season to 125 hectares for the present 2001-2002 season, a 79 percent increase. Productivity for the same period increased 106 percent from 145,000 cartons to 299,300 cartons. Gross sales increased from $1.6 million in 1999-2000 to $1.87 million in 2000-2001 to $2.77 million for the present season, a $1.17 million sales increase for the two-year period - and a $900 thousand increase from the previous season.

\The investment in a new packhouse for the independent growers in El Sifon resulted in gross sales of $196,000 (14 containers of cucumbers) and net earnings of $84,750 for their first season (2000-2001). For the present season, these growers increased their area from 14 hectares to 21 hectares and their exports from 14 containers to 24 containers. Gross sales increased from $196,000 to $259,000.

Fintrac CDA also set targets focused on increasing productivity in the fields. Technical assistance was provided on a weekly basis both during the season and off-season with alternative crops for rotation. Technical representatives worked with all of the cucumber

and squash producers on implementing new production practices. Cucumber yields increased by 19 percent from 1,423 to 1,692 exportable cartons/hectare; squash yields increased by 3.4 percent from 1,093 to 1,131 exportable cartons/hectare.