Final evaluation of agro-industrial export development project

Final report covers the period l976-9/81 and is based on document review, site visits, and interviews with project staff. Although the project demonstrated potential, the unrealistic goal of raising small farm income in 4-5 years was not achieved. The proposed Government of Honduras (GOH) project management group never developed -- the project was instead managed on a year-to-year basis by the Standard Fruit Company -- and no 3-year operating plan was ever formulated; there was a high rate of turnover and disagreement within the GOH; and the GOH provided less than 20% of its expected financial contribution. In addition, USAID/H apparently assigned little importance to the project. The processed vegetable component failed because USAID/H did not hire a tomato specialist and under the terms of a contract with the processing company farmers incurred heavy losses which caused them to cease tomato production after 1 year. Under the fresh vegetable component, field trials of cucumbers and tomatoes (rather than the seven planned crops) were conducted among two farmer groups. After initially mixed results, U.S. test marketing proved successful. In 1980/81, although previously high cucumber yields fell, two more farmer groups were added, formal credit sources were tapped, and a packing plant was built. Regarding institution building, although most formal training targets were met, trainees did not always proceed to serve the project. It is recommended that: (1) the project be extended 3 years; (2) institution building at the national and cooperative levels be given high priority; (3) USAID/H provide a full-time project manager and clarify project management; (4) both the GOH and the contractor assign trained technicians; (5) a research program addressing key problems (e.g., irrigation techniques, weed and insect control) be immediately designed; (6) all newly participating farm groups utilize progressive field trial systems; (7) production be diversified; (8) a proposal be submitted for handling cucumber sales; (9) arrangements be made for producing and processing tomatoes; (10) market studies be conducted; (11) a clear lending and capital development policy be developed; and (12) agricultural inputs be obtained in a timely manner.