USAID
The agricultural development initiative in Timor-Leste focuses on enhancing the commercial horticulture activities of Smallholder Horticulture Associations (SHAs).
2012 · 25 pages

Abstract
The initiative began in 2012 with funding from USAID's Development Assistance Contract (DAC). The main objective is to assist SHA farmers in establishing organizations that can successfully manage their commercial horticulture activities, improve horticulture technology and practices to meet market demand, and develop a strong horticulture value chain that increases sales volume and profits. In Year Two, DAC's work with SHA farmers focuses on developing sustainable ways for communities to independently manage the planning, production, and sales of vegetables. This includes assisting farmers to choose and implement the type of organization that best meets their needs and training group members in required skills. Different approaches will be appropriate for different communities, depending on their current level of organization, initiative, and willingness to work together, and the human capacity within the group. DAC provided technical assistance for management, including support for group meetings, developing problem-solving skills, training in business skills, and facilitation of the business relationship with Kmanek. Significant progress was made in this quarter finalizing the provision of various capacity-building programs for the farmer groups. The SHA Sarin farmer group discovered that four members sold greenhouse-produced capsicum to vendors in the Hali Laran market in Dili, violating the farmer group agreement with Kmanek. DAC assisted Kmanek and the Sarin farmer group to resolve this problem and establish an agreement for moving forward. A new greenhouse management system was implemented, with Kmanek agreeing to provide a greenhouse manager to organize and supervise work in the greenhouse. The greenhouse manager will assist the farmer groups by recording individual member's work contributions, and Kmanek will help the farmers to distribute payments according to their own group rules. The farmer groups have agreed to pay members according to days of work in the greenhouse, in order to reward members who work more. These payments will be deducted from the total harvest payment, and the remainder will be divided among the members according to each group's rules. The initiative has achieved significant progress in Year Two, with farm sales of 22 m.t. from the SHAs generating over $16,000 during the quarter. The totals of vegetable production from all SHAs for April-June 2012 were 20,026 kg and $14,371, with greenhouse production totaling 1,550 kg and $2,277. The next phase of DAC training includes competitive procurements and contracting for three important trainings: Bookkeeping/Recordkeeping, Farming as a Business, and Farmer Field School.
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