Agro-industrial export promotion

Final PES covers the period 9/76-9/81 and is based on an attached final evaluation (XD-AAJ-405-A). The project fell short of its targets. The planned Project Management Group was never created, (although four Government of Honduras -- GOH -- professionals did receive U.S. training). No 3-year plan for the fresh fruit project was developed and only two of seven targeted crops -- cucumbers and tomatoes -- were field and market tested extensively. Loans only began to be made in 1980/81. No baseline surveys were completed, and only five of nine targeted extension agents were working full-time in 1980/81. The packing plant and the feasibility studies for the fruit project were completed on schedule. At the purpose and goal levels, no coordinating mechanism for demonstration projects was designed and no evaluation committee formed; no new agribusiness projects were undertaken and no project fund established by the GOH; no processed produce was exported; only 580 of 1,800 planned metric tons (mostly cucumbers plus some tomatoes) were exported regularly (by 1980/81), although both proved acceptable to U.S. markets; only 140 of 496 planned farm families cultivated manzanas for export; and income was increased for only 1,680 of 3,319 targeted farm families. The vegetable processing phase failed the first year because it tried to produce tomatoes commercially before farmers were prepared for it and because Mejores Alimentos paid farmers low prices and was late with these. There were also early disagreements between GOH ministries on the project"s direction. The project needed a longer time-frame, private initiatives, and more sustained A.I.D. monitoring. Help will be needed for 3-5 more years to make the project self-supporting. Other needs are to dispose non-exportable products (preferably through internal markets); clarify project management, especially in the Valley; conduct research to solve pressing technical problems; make a permanent institutional arrangement; and diversify production so as to reduce production and marketing risks. Six action decisions for follow-on activities under P.L. 480, Title III are included.