AGRICULTURAL MARKETING AND CREDIT ADMINISTRATION PROGRAM

Evaluation covers the period 4/79-3/80 and is based on review of FENAC reports and accounting books, field visits, and interviews with FENAC leaders. The project is progressing well and most output targets have been met or exceeded. FENAC"s manager and professional staff are in place and are learning to carry out their responsibilities autonomously. FENAC is repaying its loans to the American Institute for Free Labor Development (AIFLD) in good time. Courses to establish credit and supervisory committees in FENAC affiliates will begin later this year. Although FENAC affiliates will not participate in the Banco Agricola"s supervised credit (SC) program until next year, 37 new affiliates are now receiving group credit from the SC program. Currently, 20-25 affiliates are marketing through FENAC, and two regional marketing centers will be completed by 7/81. The coconut processing factory will begin operation 4/80. Training courses for FENAC"s executive committee have been held in areas such as marketing controls and accounting; annual planning; and credit supervision. One, of six planned, new paratechnicians has been hired and is being trained. Increased production costs, FENAC"s honest purchasing policy, and the government"s refusal to raise the price of rice, have kept FENAC from capitalizing on the rice marketing operation. Before the next rice harvest, AIFLD/FENAC will design a more realistic system to service member rice producers. For capitalization purposes, FENAC will concentrate on coconut and coconut by-products. FENAC is beginning to expand exports to Europe and the United States and will study whether to purchase trucks to reduce transportation costs. More than 5,000 farmers and their families have benefitted from the project so far, and other 5,000 are being promoted. Although beneficiaries are not the poorest of the poor, FENAC has shown an ability to reach out to less advantaged farmers.