HomeArticlesRural Bolivian farmers debut on international markets

Rural Bolivian farmers debut on international markets

Improved technology and processing combined with conformance to organic standards leads to "super-premium" bananas

In Bolivian communities previously accustomed to government subsidies and assistance from donor organizations, local associations of banana producers are now using entrepreneurial skills to break into profitable export markets with higher-quality fruit. They are also part of a shift to rural development based on growing sustainable, competitive enterprises, a shift guided by technical expertise and business strategy provided by USAID’s Bolivia Rural Competitiveness Activity (ARCo).

With guidance from ARCo, banana producers are using improved technology and processes to deliver “super-premium” bananas, a first for Bolivia. By consistently producing this high-quality fruit, Bolivian producers now earn about 20 percent more for their fruit in the Argentinean market.

To qualify for this high standard, the bananas must meet strict requirements for size, quality, and packaging. New tracking systems also help banana producers and exporters quickly identify and isolate problems before they can spoil shipments and disrupt sales.

“It’s not simply a matter of vacuum packing the fruit,” said Mauricio Cosio, a business advisor with ARCo. “These associations are moving from a medium technology to a high technology.”

ARCo also is supporting a separate initiative in Bolivia’s Alto Beni region that is exporting organic bananas to Chile and helping 300 families double their earnings on top bananas. Bananas that do not meet the standard for export to Chile are sold through local vendors or to school breakfast programs in La Paz and El Alto.

“This is a great opportunity for us,” said Lourdes Quispe, an export manager for the banana producer associations. “We are improving the quality and soon we should … increase our sales.”

Building on the initial success of the organic banana exports, ARCo plans to expand the program by helping more producer associations consistently meet the quality requirements for export.

Also with ARCo’s assistance, Bolivian banana producers are testing the limits of the market in Chile. Initially, most of the organic bananas will not be identified as such and will be sold simply as quality fruit. Only a small portion will be “certified organic” and sold at a premium. This method will help determine the demand for organic bananas and the willingness to pay a higher price while ensuring that Bolivian bananas establish a market presence.

ARCo’s work with banana producers and other small farmers in Bolivia is part of USAID ’s integrated development strategy in the country. Complementing other initiatives, ARCo provides non-financial assistance to foster entrepreneurship and to create opportunities for sustainable and competitive rural enterprises.  For further information about this initiative please read the following success story: New Markets for Organic Banana USAID Bolivia 17 May 2007 [pdf, 74 KB]

by USAID Bolivia Rural Competitiveness