Non-traditional agricultural export production and marketing project, AID cooperative agreement no. 519-0392-A-00-1153-00 to the Cooperative League of the USA (CLUSA)

(CLUSA) to help cooperatives in El Salvador to produce and market nontraditional agricultural export (NTAE) crops. The project has four main components: (1) NTAE production technology transfer; (2) marketing and investment promotion; (3) strengthening of cooperative agribusiness management; and (4) training and information management. CLUSA will improve the flow of NTAE technology to cooperatives and small farmers. (1) CLUSA will provide intensive training and focused TA to low resource farmers and producers in crop production, land selection and soil preparation, fertilization, pest control, irrigation and harvest management, etc. (2) CLUSA will link producers to other producers, private sector suppliers, and buyers, with specific emphasis on increasing the level of TA provided by exporters and processors to producers; the project will assist only those processors and exporters who are willing to provide TA to, and have a record of dealing equitably with, producers. (3) CLUSA will collaborate with training institutions such as CATIE, Zamorano, and the Salvadoran national agriculture school to promote the development of a network of private agricultural service enterprises, which would provide specialized services to producers, processors, and exporters. CLUSA will also continue its advocacy role in assisting cooperatives secure production and other credit from the banking system. CLUSA will also provide assistance in the area of NTAE marketing and investments. Market demand and price information will be disseminated to processors and exporters in conjunction with the Salvadoran Foundation for Economic and Social Development (FUSADES). Marketing efforts will include a system for in- country quality control and inspection of exports, observation of U.S. inspection procedures at ports of entry, new packaging and loading systems, and marketing feasibility studies. Investment promotion will focus on facilitating joint ventures between U.S. brokers and importers and Salvadoran producers, processors, and exporters. To specifically encourage U.S. investment, CLUSA will ask the Overseas Private Investment Corporation to provide investment protection information. CLUSA will establish a Cooperative Agribusiness Unit to address the business management training needs of participating cooperatives. Major activities will include preparing action plans, developing accounting systems, building functional management structures and communication skills, and establishing secondary level cooperatives which can provide services to the agricultural sector. A recordkeeping and reporting system will be installed to monitor the production of participating cooperatives. The system will supply CLUSA with information on such matters as areas planted, production yields, quality, labor and equipment costs, income, economic returns from each operation, etc. To support other parts of the project, a specialized training unit will be set up to develop training modules, conduct training-of-trainers, and coordinate the delivery of training to project participants.