ICT for the optimisation of production, marketing and social organisation of cacao growers in Ecuador - Ecuador

Maquita Cushunchic Comercializamos como Hermanos (MCCH) is an organisation consisting of a not-for-profit foundation supporting projects throughout Ecuador and a profit unit that is mainly concerned with the export of cacao. MCCH has been working in a programme for cacao in Los Ríos, Guayas, Manabí and Esmeraldas provinces since 1990, which resulted in the creation of a cooperation of 33 cacao producing organisations in 2003. Currently MCCH manages around 4% of the total cacao export of Ecuador.
The project aims to improve the sales of cacao by strengthening the cacao cooperatives and convert them into business-oriented fair-trade cooperatives. The strengthening during the first phase mainly focused on the set-up of a management information system to improve planning and informed decision making. A database has been installed to keep track of cacao producers and of inputs and production of regional cacao intake centres in the coastal provinces of Ecuador. Also, a pilot was carried out to bring connectivity through short-wave radio to these isolated areas.

Ecuador contributes some 3% of world cacao production, but 1% of the world's mills. Ecuador's largest cacao producing province is Los Ríos (23%), followed by Guayas (21%), Manabí (20%), Esmeraldas (10%), El Oro (6%), and Bolívar (4%). Some 60% of Ecuadorian cacao production is exported as dried beans, 35% is absorbed by domestic industry, and 5% is consumed locally on a cottage-industry basis. Technical training, use of technology to administer, use and disseminate information on production and negotiation decision-making, and organic certification all directly influence cacao prices, which can be significantly higher. This will directly provide sufficient income to cover production and marketing expenses.

MCCH contributes by providing the installed infrastructure, technology, dissemination of knowledge and other services that the MCCH Foundation already has.

Read more about IICD’s Ecuador Country Programme.

A second project phase has been formulated and is under implementation. The extension phase strongly focuses on the operation of two telecentres in the coastal zone. The economic feasibility of this operation had previously given rise to doubts within MCCH. Underlying cause is the failure of the PROMEC-World Bank initiative to install the planned number of telecentres and connectivity in the coastal zone. For this reason the formulation and inception of the second phase have undergone a delay. IICD has been looking for innovative connectivity solutions in Esmeraldas Province, so that the second project phase, funded under the IICD-HIVOS agreement, includes the most recent advances in connectivity technology. Also, the project will provide capacity development of infocentre staff.

The second phase is being implemented, after a feasibility study on innovative connectivity issues for this poorly connected area had taken place, the results of which have been integrated into the formulation of the new phase. During this phase focus is on connectivity issues of 2 telecentres and capacity development of its membership.

The connectivity infrastructure is currently being installed. identification and training of 2 telecntre administrators is taking place. capacity development of local MCCH staff is foreseen for February 2011 and of end-users in March 2011.

From April 1st 2011 the MCCH project will be in independent continuation.

Planned results:

The project develops IT tools, including data collection and analysis; setting up Internet connectivity under the difficult conditions of the coastal zone of Ecuador-Web; setting up short-wave radio links, and purchasing equipment for eight cacao intake centres. Also foreseen is the preparation of educational material, for socio-productive-commercial training with organisations throughout the country, and publication on the Web of small farmers' social and production information, expanding the project to all cacao organisations that are working with MCCH.

Specific results:

• A database (Infomaquita) to effectively administer local and international production and marketing management, with the possibility for situational analysis and forecasts
• IT infrastructure of at least two infocentres.
• Constant information exchange among cacao growers' organisations, and marketing and/or socio-productive support organisations.
• A communication system, installed and active, using multiple technologies.
• A centralised database to administer socio-productive project actions, covering organisations' planned needs.

• Target group training in basic ICT, data collection and analysis.

• To transform regional cacao intake centres into commercial centres to improve the commercial information flow among cacao producing farmers’ organisations.
• To support the development and strengthening of the Network of Cacao Farmers of Ecuador, guaranteeing the Network's continuity and sustainability, on the basis of the increased profitability generated. Individual centres will improve their sales and the living standard of cacao-growing families will improve.

As a result of the installed database there is a better insight in production figures of the cacao intake centres, allowing for improved cacao trading.

Read more about IICD's approach towards Livelihoods.

• The MCCH training process has enabled most of the target group to use commercial information (pricing) beneficially.
• Cacao intake centres should sign an agreement prior to joining the project, in order to ensure that both parties know their duties and rights.
• There is a cacao marketing system in effect involving community gathering centres and MCCH export processes.

Maquita Cushunchic Comercializamos como Hermanos (MCCH) is an organisation consisting of a not-for-profit foundation supporting projects throughout Ecuador and a profit unit that is mainly concerned with exporting cacao. MCCH has been working in a programme for cacao in Los Ríos, Guayas, Manabí and Esmeraldas since 1990, which resulted in the forming of a cooperation of 33 cacao producing organisations in 2003. Currently MCCH manages around 4% of the total cacao export of Ecuador.