Thesis Presentation-Guido Vega

7/30/2019 Thesis Presentation-Guido Vega

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The rural agribusiness development andenvironmental conservation in highland areas of

Peru.An analysis of the current and future situation of organic farming in three districts of the

Lurin River Basin.

Thesis of Masters in Sustainable Technology

Guido Vega

Supervisor: Larsgran Strandberg


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Table of contents

1. Introduction

2. Aim and Objectives

3. Literature Review

3.1. Rural Agribusiness1. 3.2. Traditional farming and agroecology

4. The Study Area: Lurin River Basin

5. Materials and Methods

6. Results and Discussion7. Conclusions

8. Recommendations


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Introduction

Rural agribusiness (RAI) is an activity that implies

many small producers in vulnerable areas since

ancient times.

RAI has mostly been developed under the organicfarmings principles.

For many small farmers in Peru, RAI is important

because it contributes significantly to food security,generate income and develop in balance with nature.


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Aim and Objectives

To describe the characteristics of rural agribusiness (RAI)and how this activity contributes to the conservation of theenvironment in the high land areas of Peru. Thus, RAIs

strengths and limitations and its impact on environmental

conservation have been identified and described. For thisit has taken the experience of small farmers in the LurinRiver Basin as a case study.

Finally, a study on the current and future situation usingthe scenario methods, and a sustainability analysis iscarried out for the three districts of Monticielo Association.


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What is the rural agribusiness (RAI)?

RAI is an activity that allows increase and retain in rural

areas, the added value of production in rural economies,

through the implementation of post-production stages, such

as selection, washing, sorting, storage, preservation,

processing, packaging, transportation and marketing ofagricultural, marine and forest products (FAO, 2000).

RAI includes companies involved in the food and fiber

production and seed supply, agrichemicals, farmmachinery, processing, distribution, and marketing(Agribusiness Association of Australia, 2010).


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Rural agribusiness in Peru

Many small rural agro-industries (over 3 000 m.a.s.), theyare artisanal, traditional or subsistent.

Is heterogeneous, depending of zone, area, product, etc.

It involves thousands of farmers; it generates developmentfor their families and their localities.

Production: Dispersed, mostly for auto consumption,

Institutional framework: Public and private institutions,

where NGOs have an important role. There is no enough a legal framework.

Market: empirical


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Traditional farming is based on farmer`s

knowledge and skills. It is a cultural legacy.

A key feature of traditional farming is its

diversity.

Agroecology is a scientific discipline focused on

ecological perspective of agriculture.

The great aim of agroecology is agro-ecosystem

optimization.

Traditional farming and agroecology


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Organic agriculture

It is a holistic production management system which

promotes and enhances agro-ecosystem health,

including biodiversity, biological cycles, and soil

biological activity...(FAO, 1999). It is is a production system thatsustains the health of

soils, ecosystems and people... and promote fair

relationships and a good quality of life for all

involved(IFOAM, 2008).


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Global organic agriculture

Figure 1: The organic agricultural land in the

world, (adapted from FIBL & IFOAM,

2010a: 8).

Total land: 35 million hectares

Figure 2: The organic agricultural land in the

world, (adapted from FIBL & IFOAM,

2010a: 18).


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Organic agriculture in Peru

Figure 10: Export of Peruvian organic products, (adapted from IDMA, 2008d: 9)


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Role of agribusiness in environmental

conservation

RAI have been developed under organic farming

principles. Thus it contributes significantly to the

environmental conservation from a holistic context.

RAI optimizes the use of local resources, promotesthe agroecology, thus helping environmental

conservation.

RAI and sustainability

RAI and food security

RAI and biodiversity


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The study area: Lurin River Basin

It is located in central Peru, department of Lima, extending from thewestern slopes and glaciers in the Andes to the Pacific Ocean on the coast,between 0 and 5,000 m.a.s.

Figure 12: Lurin River Basin, (adapted from AAM, 2007).


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Environmental characteristics

Climate: It varies from warm to cold (bottom: subtropical-desertic/warm-tempered; middle and high: cold tropical/dry inwinter/abundant rains).

Hydrography: Pacific Hydrographic System (0-5000

m.a.s.). Natural lakes and snow capped mountains give rise to theformation of the Lurin River.

Geology, relief, soils and erosion: It has beendeformed forming folds and geological faults. It

presents a greater susceptibility to erosion. Biodiversity: Mega diversity. It has six of the eight natural

regions. Microclimates and ecological zones make it a privilegedposition.


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RAI in the Lurin River Basin

It is in an early stage of development.

It is an important alternative for farmers incomegeneration.

Wide production because of the heterogeneity in the

area. Institutional framework: NGOs, local governments and

some ministerial programs.

Market: Ecological fairs, institutional sales, auto

consumption. Potential: Growth in consumption of organic products.

Limitations: Weakness in the productive units, technology,organisation, market, and institutions.


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Materials and Methods

Purpose: To study the current and future situation of Lurin River Basin,as well as an analysis of sustainability.

Boundaries: Lurin River Basin (time boundary: 2010-2020).

Limitations: Data availability.

Methodology: Information is obtained from NGOs working in the LurinRiver area, local governments, the portal of the Peruvian State andonline/internet sources.

Scenarios: Scenario 1: Forecasting scenario (Business as usual).

Scenario 2: Organic-point of sale.

Scenario 3: Organic-all Basin.

Analysis of Sustainability


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Results and Discussion

Current situation - production

Agricultural land and producers: There are over 300 organicfarmers in the Lurin River Basin. Monticielo Association has 86organically certified producers (32,5 hectareas ).

District Products of

San Damian Milk

S.J. Chorrillos Apple and quince

Tupicocha Herbs

Zone Agricultural

production

Livestock production

Lower part Fruits, vegetables,

cereals, forage, roots

and tubers, herbs.

Small animals. creole chicken,

guinea pigs, ducks, creole

turkey, pork

Medium and high

part

Fruits, vegetables,

cereals and legumes,

forage, tubers and

roots, herbs

Small animals: Creole chicken,

guinea pig, rabbit, duck,

sheep, goats, pigs.

Major animals: cows, donkey

and horse.

Other: bees (honey, pollen,

royal jelly).

Agricultural production Agribusiness production


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ResultsCurrent situation

Market: The main market is thecity of Lima. Small amount is soldin the same places of production.

Standards and certification

National Commission of Organic

Products (CONAPO). Participatory Guarantee System-

SGP.

Biolatina.

Organization

Monticielo Association National Association of Ecological

producers of Peru (ANPEP)

National Network of Organicfarming (RAE)

7%

65%

4%

19%

3%2%

4%

In the district Ecological fairs

Minimarkets Wholesale market

Institutions Delivery

Others

Figure 26: Marketing of products by type of market

in percentage 2008, (adapted from IDMA, 2007,

2008d).


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ResultsSWOT analysis

Strengths Weaknesses

Biodiversity and microclimates.

Farmers` ancient knowledge.

Ecological farming practices .

Strategic location close to the city of Lima.

Producers working together with NGOs IDMA

and certifier Biolatina.

Low production/productivity/quality products.

Insufficient water supply.

Lack of technical use/knowledge.

Market (poor negotiating capacity).

Informality in local producer organization.

Few researches about organic production.

Opportunities Threats

Growth in consumption of organic products.

Comparative advantages.

Peru's economic stability.

Decentralization process

No threats of pollution

Positive society perception.

Good possibility for strategic alliances

Dispersion of production and competition

Limited access and high cost of technology

Low institutional presence of the State

Climate change (drought and frost, and the

occurrence of pests and unknown diseases)

Uncertainties to external economic crisis, the

government and ethics.


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Drivers of change

Production and processing.

Use of technology.

Research and technological development

Farmers organization. Marketing.

Elections and political changes.

Policies and support institutions.

Urbanization and population growth. Climate change.


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Scenarios

Scenario1: Forecasting (Business as usual)

It would achieve a small increase in the

processing of raw materials and sales.

The most influential drivers of change are

production, farmers organization and sales.

Apple products: strongest growth

Dairy products: growth is almost negligible

Herb products: the main problem is the market


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Scenario 2: Organic-point of sale

This scenario aims to implement a point of sale in Lima, inorder to articulate the processed products to differentmarkets.

By 2020: Farmers organically certified: 80% by Participatory

Guarantee System-SGP, 60% by third certifier.

Five new products are developed, standardized and certified.

On average sales are increased 15% per year.

Farmers will have more resources and skills for managing theirfields, processing plants and social organization.

A strategic alliance of territorial development established.


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Scenario 3: Organic-all Basin

All stakeholders take an empowerment of the agroecologicalproposal.

By 2020:

80% of the agricultural fields will be organically certified.

All districts will have solid organizations and agro-processingplants are implemented.

20 new products are developed, standardized and certified.

The main markets are identified and products are marketedsuccessfully (sales are increased 30% per year).

Strategic alliances are established.


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Finding strategies towards Organic-point

of sale scenario

The strategies were divided into five main

categories:

Biodiversity, production and productivity.

Use of technology.

Farmers organization.

Marketing. Institutions: Territorial Rural Development.


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Analysis of sustainability

Technical and environmental sustainability:

Incorporation of agro-ecological techniques

Process simple and easily adapted

Technologies easy to use and management.

Social sustainability:

Actors involved and engaged with the proposal.

Replicability

National network of organic farming and institutional support.

Economic sustainability: Increased production, sales and profitability.

Income is reinvested in the processing plants.

Monticielo Association is formalized.

Great opportunity: legal and institutional framework.


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Conclusions

Rural agribusiness allows increase and retain the added value of farm productionthrough transformation. In highland areas of Peru there are many small farmers whodevelop rural agribusiness, in general, by traditional methods, small-scale and in afamily atmosphere.

The rural agribusiness is a very important sector for because it contributes to foodsecurity and generates income and employment for rural families. In addition, ancestral

knowledge and agroecological practices by farmers help preserving the environment. The main strengths of rural agribusiness are the great biodiversity and microclimates

that favor organic production, and growth in consumption of these kind of products byconsumers. Moreover, the main constraints are lack of knowledge, the low use oftechnology and marketing problems.

In the case study of the Lurin River Basin it has been identified that most farmers useecological farming practices in the cultivation and processing of their products. 70% of

cultivated lands by members of the Monticielo Association are organically certified.There are three small plants for processing dairy products, apple and quince, andaromatic and medicinal herbs. However, the main obstacles are the low institutionalsupport, weak organization and lack of marketing ability of farmers.


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Recomendations

Continue with the training and technical assistance in

production technology, organization and marketing.

Supervise and monitor activities post-project ", in

order to verify compliance with the techniques taught. Prepare documents of systematization of successful,

innovative and replicable experiences.

Develop and strengthen initiatives focused onTerritorial Development.


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Thank you for your atention

Documents

Thesis Presentation-Guido Vega