Fintrac CDA Program in Honduras Reports Excellent Progress for First Half of 2002

La Lima, Honduras (August 7, 2002) - During the first six months of 2002, the Fintrac CDA program in Honduras has reported significant increases in exports, farmers sales and incomes, crop yields, and outreach.

For the first six months, the Project has provided direct technical assistance and support to 194 lead partners comprising 3,726 individual growers. Through the Business Development Services (BDS) program, the Project is reaching more than 25,000 additional growers. The majority (75 percent) of lead clients are categorized as small companies (less than $66,000 in annual sales) - of which, 31 percent are micro-businesses. The remaining 25 percent pf lead partners are medium or large-scale agribusinesses. Activities are being carried out in 13 departments in the country and include key linkages and collaboration with other institutions and organizations to further expand the reach of Project activities.

Fintrac CDA has been able to develop and expand on activities carried out during the initial 22-month first phase of assistance (February 2000 - December 2001). Results for the first six months of the current program have met expectations. Cucumber exports for 2002 reached a record high of $7.37 million, up $1.76 million (31.6%) from 2001 levels. Squash exports reached $1.82 million in 2002, up $0.73 million (67%) from 2001 levels. Watermelon exports reached $4.06 million, up $0.77 million (23%) from 2001 levels. The Fintrac CDA jalapeño pepper program with independent growers has expanded from 120 hectares in 2001 to 180 hectares in 2002. and 47 small- and medium-sized growers are now participating. In the first six months of 2002, 4.25 million pounds of pepper have been sold under a fixed price contract for processing - resulting in sales of $723,000 for participating farmers. New markets have also been opened in Guatemala and, as a result, total jalapeño sales should total $1.93 million in 2002. The Valencia yuca program has been expanded with 284 hectares planted this year by 200 growers. Two of the yuca buyers have planted an additional 350 hectares. Sales of more than 2.1 million pounds of yuca have been made with a sales income of $110,000. New exports have been made of both fresh and frozen yuca. The introduction of improved technologies has helped increase field productivity in many of the crops: cucumbers (yield increase of 19%), squash (3.4%), jalapeño (31%) and yuca (80%).

New markets have also been opened for microprocessors and calendarized vegetable producers in local supermarkets, jalapeño producers in Guatemala and yuca producers in the USA. New products have also been developed, including flavored plantain and yuca chips, jalapeño sauce, processed papaya and mango jams. The first commercial Solo papaya production program has been initiated with 20 hectares of production. More than 230 hectares of drip irrigation systems have been installed by lead partners. Biological controls have been introduced on a commercial scale involving 200 producers on over 1,000 hectares. With project assistance, food safety systems have been implemented by two major processors that have successfully passed audits by international buyers - without these systems they would not have been able to continue exports. For the first time in Honduras, the Project's specialty coffee program has identified the zones and growers of specialty coffee - based on quantitative cupping results. Cuppers have been trained to international standards and two cupping laboratories installed. Fintrac CDA lead partners have invested more than $0.5 million in capital investment over the six months in irrigation systems, packhouse improvements and processing equipment.

The new BDS program has been fully implemented and involves input suppliers, companies with embedded technical services, packing services, extension services, technical colleges, training institutions and others. Through these lead partners, Fintrac CDA's technical and market information material is reaching more than 25,000 additional farmers. More than 150 bulletins and manuals have been prepared. The BDS clients are also involved in the Project's hands-on training program; more than 1,500 persons have received specific training so far in production, postharvest, processing, marketing, food safety and business administration.

Fintrac CDA has also strengthened and expanded relationships with other institutions and organizations in order to increase outreach. Support is being provided to the Ministry of Agriculture in irrigation programs, market information and market development, and collaborative work is being carried out with Solo papaya. A "training of trainers" program has been developed with Infop in food safety and food processing techniques. Initial activities have begun with Foprideh (an association of NGOs) to involve selected programs in Fintrac's market-driven production activities. Activities with Funder in yuca production in Lake Yojoa have been expanded to include Comayagua.

The overall aims of the Project are to increase nontraditional agribusiness exports by a minimum of $10 million in 2002, double the incomes of 2,000+ farmers and double the incomes of 1,000 microenterprises. This is being achieved through a targeted technical assistance program to growers, exporters, processors and service providers (from micro- to large-scale in size).

Fintrac CDA operates using a market-driven approach to activities, both in terms of producing what the market requires and in determining partner companies' requirements to improve their operations. All project activities are designed to make this happen - starting with market research, and including developing and expanding market outlets, securing contracts, designing and improving production systems, organizing logistical requirements, and improving and installing infrastructure.