Project assistance completion report : St. Vincent integrated management, production and marketing project

Vincent to provide farmers with production and marketing support. ORD has a long history of management problems, which were not overcome during this project, despite the efforts of the Pan American Development Foundation (PADF) as grantee. PADF fielded a full-time management specialist for 2 years and a full-time agricultural marketing specialist for 3 years, and provided follow-up consultancies in these areas along with short-term TA for other specific tasks. In addition, the project provided ORD with funds for staff support and some training and commodities. Although ORD has substantially institutionalized (to the extent that could be expected), management systems relating to financial reporting, membership records, and sales, production, and loan data, it cannot be said that ORD operates in a businesslike manner. As advisor, PADF could only encourage, and not insist that ORD tailor spending to budget and observe conservative financial and management practices. Specific problems included overly optimistic estimates of revenue; lack of control over expenditures; inadequate collection of farm supply loans; diversion of revolving funds to cover operating expenses; and problems in purchasing, pricing, and inventory management at ORD's farm supply stores. During the last year, ORD focused its attention on producing, drying, and marketing turmeric. Operations were unsuccessful due to difficulties in managing the newly constructed drying and packing facility, combined with problems in negotiating and pricing turmeric marketing contracts. All of this has resulted in the accumulation of substantial debt. Because of ORD's inability to correct these deficiencies, the project was shortened. The project did have a positive impact on some farmers through training and credit, but its overall achievements did not warrant continued A.I.D. support. The project underscores the fact that good management systems do not in themselves ensure good management practices -- sound leadership and good managers are essential. The ORD experience also emphasizes the importance of fundraising and resource mobilization.