rico

COPAC OPEN FORUM Fair trade and CooperativesThe best price or capacity building: 

COPAC OPEN FORUM Fair trade and Cooperatives The best price or capacity building Gastón Rico Cooperativas Agrarias Federadas Uruguay Berlín, January the 21st., 2005

Uruguay : 

Uruguay SW of South America, between Argentina and Brazil Member of MERCOSUR 176000 sq km Climate: temperate Population: 3,164 millon 91% urban 9% rural

Uruguayan farming: 

Uruguayan farming Mildly rolling surface Natural rolling pastures Agriculture: 9% of GDP Agribusiness: 25 % GDP 58000 farmers 147.000 rural workers

Cooperative sector: 

Cooperative sector 55 cooperatives 2 Centrals (2nd degree) All sectors Several agroindustries Reengeniering, on going process

Basic figures: 

Basic figures Dairy: 90% of the milk production, 3000 farmers Cereals andamp; Oilseeds: 2000 farmers (30% wheat/barley; 40% soybean/sunflower; 5% rice) Wool: 10% Lamb meat: 50% Beef cattle: 10 % Honey: 35%-40% of exports Seeds, sugar cane, flower cut,….. Important farmer´s input andamp; services suppliers, and technical advise network

Beekeeping in Uruguay: 

Beekeeping in Uruguay Constant growth during last 30 years 3.500 beekeepers 350 – 400.000 beehives Average (very variable) 100 beehives/beekeeper 30 kg of honey/beehives Very small farmers or part time workers

Beekeeping in Uruguay: 

Beekeeping in Uruguay Favorable conditions: Climate, flora, population distribution Network services Export oriented: 90% of the production Traditional markets Germany, Spain, Brazil Recently: USA, UK, Bellgium, Canada

Beekeeping in Uruguay: growth pattern: 

Beekeeping in Uruguay: growth pattern Wide base of beekeepers Many local groups, networks and coops. Response to an attractive and sustainable business Strong support from public and private sector International cooperation Leading role of cooperatives export oriented

Beekeeping – Coops –Fair tradeHistory: 

Beekeeping – Coops –Fair trade History CALFORU till 1991 1992, Central Apícola Cooperativa (CAC) born (13 first degree coops): up to 400 beekeepers Has bonded succesfully external markets In 1999 was the 1st. exporter with 3200 tons Other exporters: CALAS and CALAPIS

Beekeeping – Coops –Fair tradeHistory (cont.): 

Beekeeping – Coops –Fair trade History (cont.) 2000: CAC crisis begins Great drougth: 90% production drop Investment in packing plant which never operated 2001-02: major economic crisis (at regional and country level) 2002: CAC stopped its operations Lack of production Management failures Membership crisis Debt with GEPA But… coops were a determining factor in the growth and export profile of honey

Beekeeping – Coops –Fair tradeHistory (cont.): 

Beekeeping – Coops –Fair trade History (cont.) At the begining: NGO´s role between CALFORU and GEPA: access to the market more than price CAC established a direct relation with GEPA Annual Export: 300 ton to GEPA over a total of 1200- 1500 ton Prices became relevant (GEPA´s overprice: 25-30%) Key issue: harvest vs shipping date

Beekeeping – Coops –Fair tradeHistory (cont.): 

Beekeeping – Coops –Fair trade History (cont.) GEPA´s overprice shared with all CAC members 50% redistributed 50% to a development fund Another advantage: advanced payment to farmers

Beekeeping – Coops –Fair tradeHistory (cont.): 

Beekeeping – Coops –Fair trade History (cont.) When CAC falls (2002): Management failures Lack of member´s ownership Exports commitments not fullfilled and increased debt with GEPA (GEPA was unable to adjust its prices to international market levels)

Beekeeping – Coops –Fair tradeLessons learned: 

Beekeeping – Coops –Fair trade Lessons learned Relation with GEPA was not corresponded by CAC Due to its specialization in the honey CAC did not explore other products. Need to organize the supply according this specific market requirements Consolidation, classificationy, packing, shipping…. All farmers are linked to the market, but the smallest ….. Advantage of coop approach to organize and develop this sector

Beekeeping – Coops –Fair tradeTowards the future: 

Beekeeping – Coops –Fair trade Towards the future CAF (with another groups of cooperatives) would like to start a new partnership with GEPA and other FT networks CAF is a member of 'Comercio Justo Uruguay' (a network wich want to improve and expand new opportunities)

Towards the future: 

Towards the future We are also interested in wine, artisans cheeses, jams and candies, rice, wheat flour, sunflower oil.

Towards the future: 

Towards the future Why do not go beyond the price? Management, organization,…. The goal: Capacity building to less advantageous farmers and their organizarions ….through the Uruguayan Cooperative system

Slide18: 

THANKS FOR YOUR KIND ATTENTION Gastón Rico grico@caf.org.uy Cooperativas Agrarias Federadas Uruguay