IICD supported project: Technical-Commercial Information Centres for the Agro-Ecological Sector

Countries: Bolivia [BO]
Sectors: agriculture livelihood

Summary

The ecological production of agricultural products has seen significant developments over the last decade: increased production, more strict demands in terms of quality control and certification, increased expectations among consumers, and growing demand for product information by international and national trading companies. These facts create the need for a network of specialised information centres for producers of ecological products. These centres are operated by local producer organisations, receiving training and coaching in the use of ICTs and provision of information services. Information services offered to producers include market tendencies, certification norms and rules and information on the latest production technology. To enhance exports of ecological products buyers can find monthly updated information on volumes and qualities of key products such as cacao, coffee, nuts, castaña, tropical fruits, amaranto, tea and quinoa.

Update

Updated: 2005-03-09

hanks to improved ICT the project has already contributed to the
generation of new buyers in Europe and the US. The project has entered
a new phase of deepening and limited expansion. The project will pay
increased attention to the training of participating farmers; limited
expansion in the number of information centres (bi-lingual information
services (Spanish and English) and world market price information).
Finally, the project team will pay explicit attention to ensure that
affiliated farmers do pay a financial contribution to the project,
which is to result in a self-sustaining business in 2004. <br />
<br />
The financial model to ensure generation of revenues through end user
contributions represents the major challenge of the project. Affiliated
farmer organisations have agreed to contribute financially to the
project. If successful, the project will provide IICD with an important
experience on possibilities of sustaining agriculture-based
projects.<br />
<br />
Update November 2002:<br />
<br />
AOPEB, has undertaken a successful project to promote the production of
ecological products of their 41 member organisations. AOPEB developed a
database-driven website with information on standards, certification,
prices and volumes on the world market for ecological products. The
organisations gain access to price and product information through six
regional information centres exploited by member organisations. In
addition, the members provide information on their products to the
database, accessible for potential buyers in Bolivia and in foreign
countries via the web site. Furthermore, the web site provides
information for other interested institutions including universities,
NGOs, etc. To sustain the project on the longer term, both producers
and interested institutions will have to pay membership fees as from
2003 to gain access to the information. Currently, AOPEB is preparing
an extension to the proposal with a focus on expanding the project with
two additional information centres and to allow for a more continuous
and thorough updating of the information system. The project will
require limited additional support from IICD, after which operations
are to be sustained fully by revenues from subscriptions by 2004.

Objectives

To realise the development of this network, the Asociación de Organizaciones de Productores Ecológicos de Bolivia (AOPEB) will implement a network of 6 information centres in Bolivia. AOPEB defines the following strategies: 1) Capacity development of the project team in development and management of advanced information systems; 2) Development of a data base-driven website with technical and commercial information on selected agro-ecological products and a market place for demand and supply of products; 3) Development of 1 central and 5 satellite Internet access points in offices of member organisations of AOPEB in 5 departments in Bolivia; 4) Systematisation and regular actualisation of information; 5) Capacity development in the use, exploitation and maintenance of the centres for communication and marketing officers and leaders of the 41 member organisations of AOPEB.

The 41 member organisations of AOPEB are the key target group of the project, representing over 25,000 small producers throughout Bolivia. In the fifth year, it is expected to offer the information services to a total of 100 organisations and related families. Secondly, at least 300 institutions, researchers and other interested professionals are expected to benefit from the improved information service. Finally, a large number of national and international traders of ecological products benefit from a more efficient information and marketing channel

Development Impacts

The key objective of the project is to enhance the technical production capacity and the commercial negotiation capacity of producers of agro-ecological producers in Bolivia, producing for the national and international markets. To achieve this objective, the project assists in the mitigation of the producers' deficiencies access to efficient and effective means of communication and technical and commercial information

Market and finance

After a development phase, the project is to sustain itself mainly on the basis of revenues from subscriptions. In addition, the project is expected to generate additional revenues from taxes paid to AOPEB on new export licenses. The project is expected to serve around 400 subscribers in the fifth year of operations. Member organisations pay a monthly fee of US$ 6 to 10 to access the information and to promote products through the system. Other organisations pyay US$ 15 and individuals pay US$ 5 to access information. The projected revenues of US$ 35,000 in the fourth and US$ 58,000 in the fifth year are sufficient to sustain the operational costs of the project and to make a reservation for replacement of hard and software.

Budget

Financial Rate of Return: n.a.			Project Life: Sept 2001 - 2006			Break-Even: 4th year
Net Profit (Loss):
	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Capital Cost	Financing Plan:
Revenues	2	14	23	35	58	*		Owner own contribution 0.0
Operating Costs	42	38	38	38	38	*		External Funds (1st year): 61.2
Depreciation	4	4	4	4	4	*	*	External Funds (2st year): 25.0
Profit (Loss)						*		External Funds (3st year): 17.0
								Total = 103.2
accumulated cash flow								Investment Opportunity: 42.0

Project Owner : Asociación de Organisaciones de Productores Ecológicos de Bolivia (AOPEB)

Project Partners : BOLINVEST, HIVOS, IICD

Contact Organisation : IICD