Honduras -- small farmer organization strengthening project : results achieved and lessons learned

The evaluation, conducted by one of the project's three TA subcontractors, covers the period 9/85-4/91. Early in the project a decision was made to focus on one agricultural organization -- UNIOCOOP -- rather than three or four. While this may have reduced the number of farmers reached directly, the sharper focus led to several key achievements. First of all, the project succeeded in developing and transferring an effective strengthening methodology to UNIOCOOP and its affiliates. The process was clear and consistent and by involving the directors and managers of each cooperative, it ensured that relevant skills and a sense of ownership were instilled in the institutions. By linking grants and loans to goals and adjustments in financial and managerial policies, it required the cooperatives to respond to project assistance with efforts of their own. The project's three components -- institutional support, financial stabilization, and credit -- complemented each other in several ways. For example, grants that supported extension agents and computerized accounting systems also promoted cooperative training and proper loan management. Debt buy-downs also motivated cooperatives to make specific changes in their credit, administrative, and marketing policies. The planning and strengthening process was transferred not only to UNIOCOOP but to most of its member cooperatives as well. UNIOCOOP also defined its mission more clearly to focus on the reliable and cost- effective delivery of services. By providing credit for UNIOCOOP to acquire fertilizer and inputs in a time of scarcity, the project reinforced member loyalty. While much of the initial planning process revolved around stabilizing the cooperatives, the project is starting to help the more stabilized institutions plan for growth by investing in productive assets. TA and credit are now focused on improving commodity quality and marketing to enhance cooperative profitability.