MONTHLY UPDATE July 2006

RURAL ECONOMIC DIVERSIFICATION PROGRAM

PROJECT BACKGROUND
The Rural Economic Diversification Program (USAID-RED), which started August 2005, is a three-year initiative funded by the United States Agency for International Development (USAID) whose main objective is to increase incomes and employment opportunities in the rural communities of Honduras. USAID-RED focuses on increasing the competitiveness of Micro, Small and Medium-Size Enterprises (MSMEs) in Honduras, expanding their local sales, exports and investments and promoting an increase in the production and investments of increased value and value-added products.

For additional information please contact USAID-RED in La Lima, Honduras at (504) 668.2078; fax (504) 668.1190 or write to: red@fintrac.com

MARKETING AND MARKET INFORMATION

Created weekly price bulletins and U.S. market volumes for plantain, cassava, chayote and pineapple; liaison between chips processor and sweet potato producers; contact established with potential buyers of quesillo, sour cream, cassava, pickled vegetables and tamales in the U.S.; support given to transnational banana exporter to begin a program with independent producers in Olanchito; liaison between processing company and buyer of papaya, pineapple, mango and passion fruit products; follow up with plants that are close to receiving their certification to define action plans; research done in the U.S. to identify potential buyers for processed peppers; support given to complete questionnaire for new potential dehydrated fruit buyer from Germany; worked on market study on jalapeo peppers in brine; visited different distributors in Tegucigalpa with dehydrated fruit company; coordinated sweet corn production program to increase the capacity of processors who can export; delivered cassava samples to potential distributor; prepared and delivered marmalade samples and escabeche for a distributor; delivered rosquilla pastry samples to potential distributor; liaison between xilacayote squash producer and processor in Siguatepeque; contact established between exporter and rosquilla pastry producer; participated in new contract development for jalapeo pepper producers, that includes GAPs certification components; liaison between sweet potato producers from Comayagua and new exporter from Francisco Morazn; liaison between sweet potato exporters and processing plants in order to purchase product for snack production; liaison between several farmers and suppliers of plantain planting material for new plantain crops; market orientation provided to several producers from the west on cropping alternatives; sent international market reports on spices, cashews, juices and purees to several interested companies in Honduras; logistical support provided to producers in Intibuc on cucumber commercialization.

Planting Seeds in Trays

TRAINING
110 trainings took place in July: 1,065 persons were trained 912 men and 153 women. Area Food Safety Processing Production Finances Market Information Total # Events 14 15 78 1 2 110 # Persons 97 67 802 39 60 1,065

Examples: Basic agricultural production practices; management of nurseries for seedling production; production of sweet potato, plantain and cassava; production of marmalades, fried products and pickled vegetables; legal requirements for processed products in Honduras; hygiene and sanitation of plants; installation and management of irrigation systems; fertilization plans; integrated pest management; good manufacturing practices; HACCP systems implementation; existing market opportunities for several crops; management of field logs.

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USAID-RED
MONTHLY UPDATE July 2006

Staggered Sweet Potato Harvesting

TECHNICAL ASSISTANCE ACTIVITIES

PROCESSING
Design of cooling equipment for processing plant; equipment estimates for different processes; provided support on plant layout to position new equipment for processing; created start up manual for dairy producer; audited plants and developed corrective action plans; support given in determining equipment requirements for pureed bean product line; revised process for baby cucumbers in brine new operation in Comayagua; formed HACCP team in processing plants; implemented integrated quality systems in several companies; evaluated safety tests performed on dehydrated natural mango and mango coated with sugar; visited plants to assess program pre-requisites; developed flow process for sugar cane juice; sanitary design of plants; improvements made to jam and pickled products processing; tests performed on chip and other fried product packaging to improve presentation; support provided in bar code and RTN transactions; procedures on timing and temperature measurements of jams; support provided to pickled sweet corn production and processing program; registration of spice production plant with FDA and registered to comply with bioterrorism regulations.

POSTHARVEST
Support offered in washing, selection and packaging operations for second sweet potato and chayote container sent to new exporter in the central zone; support offered in the plantain peeling process; improvements made to packing line for baby cucumber and guava; assessed the existing infrastructure and recommendations to fit out a plantain packaging plant; sampling performed in several sweet potato farms; improvements made in the harvesting and transport of plantain at several farms; support offered in the assembly of a sweet potato line in the north zone; improvements made in the transport of tomato with the use of plastic crates; support in installing a new line to wash and pack sweet potato in Valle de Comayagua; sampling done in cassava and chayote farms; area designated to receive sweet corn.

OTHERS
Business plan for cassava production; estimates for irrigation project; final edition of feasibility study on production, packing and export of pineapple; business plan support offered to chips and vegetable packing clients for the local market; reviewed banana exporter presentation for producers in Olanchito; interviews and hiring for project - 2 administrators and 2 agronomists selected; advances made in feasibility study for fresh cut flowers; kitchens were delivered donated by USAID for development of processed products to two schools; installation of sand filters made locally at the schools; meeting with World Vision West personnel.

PUBLICATIONSPRESENTATIONS
Information bulletin on the main activities that take place in the processing area; technical bulletin on residue levels; success stories; summary of trainings; report on project client profiles; summary of processing activities.

INVESTMENTS
USAID-RED clients reported investments of $274,883 in July. The areas with the highest investments were: equipment and agricultural machinery; irrigation equipment; infrastructural equipment for processing plants, vehicles; and transportation equipment. The total invested by project clients and counterparts at the end of the first year adds up to $2.7 million.

Plantain:
615 thousand pounds harvested in 99 hectares; 1.5 peeled plantain containers exported. $73 thousand in total sales; 15.6 hectares planted.

Nathaly Sweet Pepper:

Advances in Select Crops July 2006 Sweet Potato: Tomato:

46 thousand trays sent to El Salvador; $415 thousand in sales; 51 hectares in harvest and 8 hectares planted. 16 containers exported: 2 to Holland, 9 to England and 5 to Canada; 27 hectares planted.

Chayote:
185 thousand units of new variety harvested; $10,800 in sales; 11 hectares in harvest.

7,200 sacks sent to El Salvador; $30 thousand in sales; 6 hectares in harvest and 17.6 hectares planted.

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USAID-RED
MONTHLY UPDATE July 2006
PRODUCTION
Field training provided on plantain and sweet potato crops; field visits with several producers to see production systems for specific crops; liming practices for production of vegetables in cold climates; support offered in the design and construction of low cost greenhouses for seedling production; delivered fertilization calendars specific to each crop; design and construction of water drainage in farms; weed control; use of biological control to protect roots; land preparation and bed making; installation and trainings on use and maintenance of drip irrigation systems; used starter solution on tomato and pepper transplants; practices of dehanding, desuckering, deleafing and surgery in plantain; control of weevils in peppers; elimination of crop residues; crop rotation; use of agribon netting to give protection from pests and virus vectors; pepper and tomato tutoring; application of fertilizers and pesticides through the drip irrigation system; sigatoka control in plantain; new plantings of Valencia cassava; obtained cassava planting stock; provided assistance in the preparation of mixtures for flower induction in pineapple plantations; use of starter solution, vitamins and sugar for flower plantings; pruning and weeding of ginger; weeding of fields before production begins; nutritional correction and pruning of roses; terraced planting of sweet corn in the West with market for processing plants; applied baits to control worms; selection of guides for new plantings of sweet potato; pruning and deleafing in chayote plantations; new plantings of carrots and beetroot in high zone in La Paz; direct germination of carrots using plastic; new transplants of onions in Olancho.

FHIA - AGROFORESTRY
Intibuc: Installation of drip irrigation
systems; support provided in the construction of microtunnels for the production of seedlings in trays and technical assistance given; supervised agroforestry plots; new plantings of forest trees and supervision of fruit tree production. Atlntida: Plantain establishment in an agroforestry system; trainings on the cleaning and disinfection of plantain planting material; monitoring and follow up given to agroforestry plots; new plantings of rambutan. Colon: Plantain establishment in agroforestry systems; control of weeds in several farms; dehanding practices on plantain and cassava; transplant of wood and fruit trees.

FHIA- AGRICULTURAL RESEARCH

Variety Tests: Supervised tests on onion varieties on interval days, a plot with 50% damages from a ravine that overflowed. Indoor evaluations of tomato and pepper during the rainy season.

GAPs and GMPs

Delivered water analysis bulletins; established clearing procedures for transport and field latrines; follow up given to the GAPs program with independent producers the information given to a vegetable producer; updated database on pesticides for peppers; development of standardized operation processes; design of warehouses; signage in fields; revised and made corrections to field logs; placement and installation of latrines; calibration of spray pumps; use of hand washing and disinfection stations; follow up to implementation plans for EurepGAP protocol on several farms; technical assistance in the creation of traceability codes.

Carrot Production

Pineapple, Papaya and Coconut Intercropped

Gliricidia, Passion Fruit and Coconut Intercropped

Rambutan and Plantain Intercropped

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USAID-RED
MONTHLY UPDATE July 2006
RESULTS / IMPACT
First commercial plantain crops in Lempira; first tomato buyer used plastic crates to carry and transport tomatoes; microprocessor in Ocotepeque sent its second shipment of pickled sweet corn to the U.S. a sale of more than Lps. 200,000; chip processing plant launched new bag for their products with information in English and Spanish; first exports of rosquilla pastries to buyers in the U.S.; implemented computer program as a tool in the administration of plantain crops; use of contours and high densities in tropical flower farm in Lago de Yojoa; improvements in disinfection process of postharvest vegetables at processing plant Francisco Morazn; established an intensive plantain cropping program in an agroforestry system that includes rambutan and mahogany; improvements made to employee lockers at processing plants; built field latrines in several farms; built deposit area for pesticide containers; built zone for mixing fertilizers and pesticides in several farms. USAID Visit to Tutule, La Paz

FINANCIAL INSTITUTIONS
Institutional Meetings: With Funed, asked for information on loans with project clients; introductory meetings with Banco Atlntida, Banhprovi, Finacoop, Banco de Occidente, Coop. Mixta Ocotepeque, Ltda.; BGA, ODEF, and Banco de los Trabajadores (Olanchito), Cooperativa Yoro, Ltda.., Coop. Ceibea Ltda., Coop. San Antonio, PRISMA, Coop. Apaguiz; were sent project bulletins and production cost information. Field Visits/Meetings with Producers: With Covelo in Choluteca (meeting between sweet potato producers and buyer) and Cantarranas; meeting with technician from Cooperativa Juticalpa, they were taken to visit several farms. Advances: Finished notes for trainers on financing presentation for project clients; prepared recommendation letters for producers in La Paz; edition of bulletins on individual crop production costs; advance in the presentations of the three training modules on financing for producers.

USAID
Field visit with the new director of MAAC and USAID personnel to Tutule and Marcala, La Paz; met to plan future activities and discuss proposed administrative changes for the RED project; attended the U.S. independence day celebration held by USAIDRED clients and Project personnel; collected samples of products supported by USAIDRED to present them at the USAID stand during the independence day celebration event.

ACTIVITIES WITH COLLABORATORS

Offered support to the Department of Industry and Commerce and to the Presidents office on technical information and manuals in the areas of production, processing and postharvest; participated in the planning of the III Plataforma Agroexportadora, organized by IICA with the participation of SAG, DICTA, FPX, FIDE, SIC, among others; follow up to program on training and the establishment of production fields in 9 rural schools and one university; alliances with several businesses that are offering support to the program with schools; began recognition and training activities with World Vision and DAP in the West (Santa Brbara, Copan and Ocotepeque); collaboration and technical support given to Hermandad de Honduras and Pilarh (West) personnel; support with insecticide logs with Crop Life; certifications and registrations with Senasa.

Training USPS La Esperanza

Training Choluteca

Training Belen Gualcho

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