Organic Agriculture, Product Design and Value Chains

The main problems in Peru as poverty, low productivity, inadequate infrastructure and poorly integrated markets are often exacerbated by an under-developed agro-industrial sector. Little attention has usually been paid to the value chain through which agricultural commodities and products reach the final consumers in Peru and abroad.

Our initiative comprise a range of technical assistance and know-how, which encompass the following key areas:

A. Product design and development:
Product development links the marketing and innovation capabilities of our enterprise with its productive potential and is thus the key to transform (indigenous agricultural) resources - available in most developing countries - into tradable products. Small-scale farmers and SMES thus increase their competitiveness in both domestic and world markets and are enabled to actively participate in national, regional and global value chains. The product design and development function and related activities cover value creation (i.e., styling, design, construction and engineering) and enhancing the design quality of industrial products (i.e., selection of species; ensuring safety; authenticity, improving characteristics; functionality; performance; appearance; packaging and supply management). In addition, the marketing competence of analyzing and responding to the markets on issues such as product requirements, competition potential, segmentation, branding, and effective communication of product values to consumers is also covered. The obvious benefits to developing societies include income generation, increased efficiency and utilization of resources (e.g., elimination of post-harvest losses), preservation of the environment (e.g., through waste minimization and cradle-to-cradle strategies), and energy (e.g., reduction of weight and transport costs), thus also effectively responding to environment- and energy-related non-tariff trade barriers.

B. Quality & Environmental Management:
- Emphasis on the area of food hygiene and safety through implementation of Good Hygiene Practices (GHP) and Hazard Analysis and Critical Control Point (HACCP) systems in the food industry and establishment of food safety systems that are based on risk analysis and risk prevention, and traceability.
- Re-engineering and cost-cutting programmes for efficient production flows and competitiveness.
- Transfer of innovative technologies to small businesses in the agricultural and food sectors enhancing their competitiveness and market access.
- Auditing of food control frameworks and related regulations and assistance in establishing systems conform with international requirements based on risk analysis and traceability.

C. Integration into Value Chains:
Support to small-scale farmers and SMEs to improve their productivity and efficiency, increase their integration into value chains, and support rural livelihood diversity. This is achieved through upgrading of technical skills, process optimization, diffusion of appropriate agro-engineering systems, product innovation/diversification, and the introduction of working methodologies and guidelines, etc. Special attention is given to marketing and design support, our core service, as a means of exposing the target beneficiaries to market requirements (customers or indirect beneficiaries).

Currently, there are only two clusters of farmers (coffee and cacao) who develop a limited chain value because they produce organic coffee and cacao with little processing. Next, these commodities are processed abroad as tradable products as fair trade coffee and chocolate. We support these initiatives, but we want to go one step further, we propose to manufacturer in Peru in order to export finished products.

We will focus on the health food market as a social choice. In additional to being perceived as a healthier option, these consumers buy organic because they believe buying organics is good for the environment, support sustainable farming systems, support humane treatment of livestock, and support alternative retailers. For many of these consumers locally grown food is an important product attribute. It has the potential for high profit margins and it creates opportunities for smaller producers and processors who may have higher production costs. This market segment still presents opportunities for smaller producers and processors interested in providing products with attributes above and beyond organic.

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