Access to Export Market Doubles Allspice Earnings

The Cooperativa Agrícola de Pimienta Gorda Ilama Ltda. (COAPIGOR), a cooperative based in Ilama, Santa Bárbara, was established in April 2011 and began working with USAID-ACCESO in June 2011. The cooperative's initial goal was to increase sales and incomes through export of high-quality allspice to the United States. USAID-ACCESO project specialists introduced the cooperative to a US-based buyer and facilitated negotiations in December 2011. Throughout the commercialization process, project specialists provided training in sampling and quality control for export products, contract compliance and negotiation, and packaging and shipping regulations. The cooperative was mentored through the first two shipments but was able to handle the majority of the shipment process for the last three containers themselves. The cooperative's export sales prices were significantly higher than local market rates, with prices ranging from $277 to $198 per 200-pound sack, representing a 40 to 67 percent increase. Net income for the six containers totaled more than $55,000. The cooperative's production capacity improved by 33 percent due to the introduction of good agricultural practices such as irrigation, fertilization, and pest control, as well as technology that increased threshing and cleaning efficiency and cut costs. The cooperative's success has led to national recognition, with the Honduran government identifying COAPIGOR as an official exporter of allspice. This has opened new avenues for additional contracts with commercial buyers around the globe. The cooperative plans to export five more containers of allspice to high-paying markets in 2012, for an estimated additional $166,000 in new sales and more than $44,000 in net income. They also aim to export at least 20 containers in 2013 and are working with USAID-ACCESO to develop a business plan and marketing strategy for allspice tea, a new product for Honduras.