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Overcoming Fragmentation: Increasing the Competitiveness of Small Producers in Honduras

  • Published on April 22, 2021
How the Rainforest Alliance is working to increase competitiveness and reduce fragmentation of primary producers in Honduras

A recently released report of the One Planet network - International Resource Panel Task Group concluded that with respect to the food value chain, there is a high degree of fragmentation among primary producers.

As prices lower and profits shrink, primary producers are left in a precarious situation that makes them dependent on food companies they sell to, in turn leaving them little margin to invest in more sustainable practices. They are in a structurally weak position since they usually work with very few companies that largely dictate prices.

On 26th April, the One Planet Network’s second monthly webinar, “What’s behind the deal? Innovative trade tools to increase the sustainability and transparency of global value chains”, will include a discussion by the Rainforest Alliance about how this fragmentation can be overcome to increase the competitiveness of small producers in Honduras.

This discussion will be based on the project the Rainforest Alliance launched in 2015, “Increasing the competitiveness of small producers and forest communities in Honduras”. This project aims to support forest communities and small producers of cocoa, coffee, rambutan, and timber products. It contributes directly to Honduras’ efforts to achieve the Sustainable Development Goals, especially SDG 12: Sustainable Consumption and Production.

Its work has focused on assisting SMEs, producers of cocoa, coffee, rambutan, and forest products in connecting with financing sources and breaking barriers to access them. They also work in providing them with technical assistance, for instance, the strengthening of administrative and financial management and the formation of long-term alliances with national and international buyers.

This project is especially relevant in the context of the Value Chain Approach report since the Rainforest Alliance considers the value chain for several components of its project. For instance, it focuses on the improvement of the value chain in aspects of production and logistics infrastructure, design of products and services, implementation of good practices, primary and secondary value-added processes, as well as the construction of strategic alliances and productive linkages.

Moreover, these strategic alliances are exclusively formed with national and international buyers interested in participating in the consolidation of value chains and investing in the organization of a supply of legal and sustainable sources.

The Rainforest Alliance’s project and their work on value chains will be further discussed at the One Planet Network’s second monthly webinar, “What’s behind the deal? Innovative trade tools to increase the sustainability and transparency of global value chains

Watch the full webinar

This webinar is the second in a series throughout 2021 which will focus on a particular theme or message of the One Planet network. In April this message centres around the relationship between trade and sustainable consumption, and how trade policy and trade tools affect the sustainability of global value chains. Stay tuned for webinars each month which will tackle a new theme, while staying connected to the science around natural resource use and environmental impacts.

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