Media backgrounder MB/10/08

12 November, Rome - The USD 31 million project, which is still in the preparation stages, seeks to cut poverty levels among some 19 000 poor rural households in 11 provinces in the north-west, south and south-west, near the Haitian border.

The project, targeting economic organisations of small farmers and rural microentrepreneurs, aims to increase the income and assets of their men, women and young people by strengthening organizational capacities, promoting effective linkage to markets, improving technology and diversification and piloting new risk management mechanisms.

Building on the success of the South Western Region Small Farmers Project - PROPESUR, the idea is to go beyond the traditional mechanism based on intermediaries, who pay a very low price for farmers´produce, and strengthen producers’ organisations. These groups will gradually build capacity in this role and directly link with traders and buyers in niche markets (fair trade and organic) with particular attention to export commodities, such as quality coffee and organic bananas and cocoa.

A key element will be innovative measures to reduce the risk and encourage local banks to invest in agriculture on a Caribbean island that is regularly subject to tropical storms. These measures include the creation of a guarantee fund through an experienced private bank - and the piloting of a weather-indexed insurance scheme.

“Innovation is a competitive advantage for IFAD in middle income countries” said Marco Camagni, IFAD Country Programme Manager.

“We are drawing up creative comprehensive solutions and bringing know how in partnership with the private sector. In this way we can help smallholder farmers link with markets on a successful and sustainable basis.”

“Climate change mitigation and sound environmental management  will be woven through this project, which will also recognise and endorse the vital role of women in economic development processes” said Josefina Stubbs, IFAD Director of the Latin America and Caribbean Division, who will be meeting government officials in Santo Domingo next week to agree on next steps to finalise the  preparation of the project.
PROPESUR began its activities

In 2000, in the midst of the international crisis that affected coffee prices. With a commercial value that did not even cover production costs, many traditional coffee plantations were abandoned. Investing in quality seemed to be the only way to escape the crisis.

PROPESUR provided training to small farmers, supported them in creating a cooperative, and facilitated their access to credit and contacts in the international markets. Today, the coffee produced by Café JAMAO is sold in the select European fair trade market.

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IFAD was created 30 years ago to tackle rural poverty, a key consequence of the droughts and famines of the early 1970s. Since 1978, IFAD has invested more than US$10 billion in low-interest loans and grants that have helped over 400 million very poor rural women and men increase their incomes and provide for their families. IFAD is an international financial institution and a specialized United Nations agency. It is a global partnership of OECD, OPEC and other developing countries. Today, IFAD supports more than 200 programmes and projects in 85 developing countries and one territory.