Quarterly Report #7: January – March 2012: DEZENVOLVE AGRICULTURA COMUNITÁRIA (DAC) PROJECT

The project focused on three main activities: PEOPLE, PRODUCTION, and VALUE. PEOPLE aimed to assist farmers in establishing organizations that could successfully manage their commercial horticulture activities. PRODUCTION sought to improve horticulture technology and practices to meet market demand for product quantity and quality. VALUE aimed to develop a strong horticulture value chain that routinely increased sales volume and profits. During the January-March 2012 quarter, DAC's work with PEOPLE focused on developing sustainable ways for communities to independently manage the planning, production, and sales of vegetables. This included assisting farmers to choose and implement the type of organization that best met their needs and training group members in required skills. DAC provided ongoing technical assistance for management, including support for group meetings, problem-solving skills, business skills training, and facilitation of the business relationship with Kmanek Supermarket. The project achieved several notable successes during the quarter. A successful business negotiation between farmer groups and Kmanek Supermarket resulted in better prices for 65% of the vegetables. DAC farmer group leaders invited World Vision farmer group leaders to participate in the session, and the negotiation went very well, with several administrative problems resolved on the spot. Additionally, a new area started brassica production, with training and input supply jumpstarting the production activities of a new farmer group in Fatubossa. However, the project also faced challenges. 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. Emergency meetings were held by the farmers group and with Kmanek, and DAC will assist all parties to find a solution that supports the continuing successful business relationship between Kmanek Supermarket and the SHA farmer groups. The project's financial report showed that farm sales of 17 m.t. from the SHAs generated almost $14,000 during the quarter. The totals of vegetable production from all SHAs were 16,950 kg, with a value of $13,857. The project also conducted an extensive survey of the vegetable vendors and traders in five Dili markets, gathering information on quantity and price critical for understanding the current value chain and improving competitiveness. The DAC contract modification was also approved, with a cost extension to the project. The new budget and workplan will double the number of farmers DAC works with and strengthen the horticulture value chain with activities through August 2014.