Private agricultural producers organization project (project number 511-0589) : USAID/Bolivia evaluation

The evaluation covers the period 9/86-1990. Confusion and difficulty have resulted from the project design"s overly broad definition of PAO"s, which lumped together regional agricultural chambers (lobbying groups) and producer associations (primarily service providers). Despite the very different roles of these types of organizations, little differentiation has been made in project activities. Instead, the focus for both groups has been on establishing single-commodity service firms. For the agricultural chambers, this objective has been inappropriate, and to date not one service enterprise has been established within a chamber. It is recommended that assistance to the chambers emphasize management, financial accounting, and regional agricultural planning. The project has had much greater success in establishing service agencies within producer associations. The FEGABENI slaughterhouse, the ANAPO seed plant and grain silos, and the ASOBOFLOR flower export enterprise have all shown initial promise. The major concern is that, unless appropriate action is taken, the subsidy enterprise may overtake the parent producer association, which is the project"s client agency. A major lesson learned is that each level of organization requires specific forms of assistance which are complementary and mutually reinforcing. The project also teaches that the notion of farmer-financed agricultural services does not have widespread acceptance, although farmers are willing to pay (as in this case) for such services when they are of direct benefit. The most effective model in Bolivia is that of a private sector processor or marketing agency which, when it buys produce, deducts a small percentage for the producers" association, the regional agricultural chamber, and the regional agricultural research institute.