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Welcome to Investment and Development.
Today we will talk about "Generating Integral Rural Development".
In the framework of the Rural Development Forum which is being promoted by CACIF.
For this we have as guest Dr. Polan Lacki, who is visiting from Brazil,
Specialist in Agricultural Extension and Fishery and
Productivity.
Eng. Iván Buitrón, Development Manager of AGEXPORT and Mr. Juan Santos,
who is the leader of the Cooperative "CINASEM" of Uspantán, Quiché.
Welcome to Investment and Development.
The issue of rural development is very important to reach
the Integral Development that we desire in Guatemala.
More than 68% of the population lives in the rural area, we have 33 thousand
communities and that is why we consider that this forum developed
by CACIF, represents a great opportunity for Guatemala.
Dr. Polan Lacki, what are the strategies that we should apply,
to have the integral rural development?
Look, the strategy in the modern world, in the globalized world,
which means, that the national producer doesn´t compete with his neighbor
but with the most efficient farmers of the world.
And with the additional complication that those who are the most efficient in the world
are coincidentally the most subsidized in the world.
And when the other complication of people with debts and without funds
governments that are not in conditions of financing ours,
then there´s not much to discuss.
I believe that the conscious governments know that they can´t do everything,
for the rural producers year by year.
Offering them credits, subsides, machinery, fertilizers,pesticides,
broodstock, warranties of merchantability.
I believe that the governments must choose priority, this priority
consisting in improving dramatically the quality of our
rural educational system.
Of the rural elementary schools, of the agricultural science faculties
and the public services and the private ones of technical assistance and rural extension,
so that the farmers can acquire that knowledge they want. So that they know
and can correct their eventual inefficiencies and when they correct them
they´ll be able to improve the prodution and productivity and they will be emancipated
from that anual and permanent dependence of the governments.
Dr. Polan Lacki, how can we implement in the practice
the Agricultural Extensionism and Fishery, so that it is translated to a
concrete competitivity of people, of the cooperatives
and of the whole scheme which makes the rural area productive?
I really believe that the most important measure, the most urgent one,
I think was the one that you diagnosed, the Agricultural Extensionism.
I don´t want to discuss if it is public or private, that for me is irrelevant.
It can be public, but I do believe that it should be executed by a private
entity, without profit, so as not to politicize the issue.
When you make this decision of recreating this service of extension.
We have to recognize that the extensionists have received
an extremely theoretical formation in the faculties of agricultural sciences
and we should offer these extensionists who are already
working on a short course of retraining done directly
in the field.
In the more efficient farms of the country so that they are in condition
of being able to guide the producers properly so that they
can give a jump of productivity.
Mr. Buitrón, like AGEXPORT says, converting Guatemala into an exporting country.
But how can these part of the exports help the generation
of the rural development that Guatemala needs?
Well, the support, in a very important way, the issue of generating
jobs and income is not an easy one.
It requires a lot of knowledge, of markets as well as the productive part.
We think that there is a great portential of development in the country
and we are not taking advantage of it.
If the public sector together with the private sector, the actors in the territory,
don´t reach an agreement and work together for this.
This program of Business Chains has been a little of that.
How we go connecting worlds, the producer in the market,
the public sector with the investments that should really be prioritized.
Then we go constructing a model of development that will exactly
avoid what Mr. Polan Lacki said, of not generating a dependance
on the situation of poverty and a vicious circle.
The greatest challenge that we have in our country Mr. Buitrón, is the access to markets.
How is AGEXPORT helping the micro, small , and medium producer
to obtain access?
Well, in the first place, AGEXPORT is an institution specialized
in the issue of exports and it has access to international markets.
There are more than 1 thousand affiliated companies that are permanently
looking for these tendencies, where the buyers are.
Through these businessmen, we facilitate access to direct markets
to small organized producers.
So the issue is, how do we manage to connect this product of the
organization, the cooperative, the producers´association
or producers, with the buyer they want?
So that we can reach those markets, it is important the role of the
community leaders.
Mr. Juan Santos, you are a successful example, we have heard how
FIDA , on an international level, sets what you have been able to achieve, as an example.
What does this opportunity with AGEXPORT mean to you,
of harvesting different products like French green beans and snow peas and having this
become a model of productive development in these communities
of Uspantán, Quiché?
The chaining made us show the cooperative´s own autonomy
that we have an image directly to sell
our product.
Why do we need an image, when we before didn´t have it?
Now we have a business image, we have our logo
to sell our products, that is how we can sell it.
We also have a support in the international fairs,
which have been a success for us, who have been participating
for 15 or 20 years.
We didn´t have a chance to go to the fairs before,
to see how the demand is, how the sale is, how the marketing tendencies are.
Through the Business Connection supported by AGEXPORT,
we feel the difference, speaking about international market,
of the agricultural exporters nationwide.
For example there are exporters who already have 40 or 50 years
exporting vegetables.
And we really haven´t learned through a course, we have learned
through private corporations.
Here we´re going to learn for life.
Yes.
What do you produce, to what markets do you export,
in what fairs have you participated?
I have participated in the agricultural fairs that are done every two years
in Orlando, Atlanta and California, these are the fairs in which
I have participated.
Where have we sold our product? We have a 60% of the exports
directly through our buyers who are in Miami,
that is the place where our product arrives.
We have companies like for example Souther, LDDI, Probage, which are the buyers
of CINASEM in Miami.
What do you produce?
French green beans, approximately 3 or 4 million pounds of vegetables.
It´s very interesting to listen to a communitary leader, a cooperativist
of Uspantán, speaking about international fairs, in Orlando,
Atlanta and California.
And that is the vision that we have to impregnate in our leaders,
so that we are world class producers through rural development.
Let´s go to a commercial break and we will continue with Investment and Development.
Let´s continue with Investment and Development.
Dr. Lacki, the cooperativist model in Guatemala has been a success,
there are about 1.6 million cooperativists in the country,
more than 51% are women.
How can we take advantage of this model to transmit these experiences
to the producers and to generate this rural development that our country needs?
Look, coincidentally, we were discussing this issue when we visited
Tecún Umán.
The cooperative by the way, had a favorable impact in me.
They are producing with high efficiency, organized, and they are getting close
to the buyers.
The question I made to the people who participated with me in that visit was;
what could we do today with the minimum expense, to make
that experience so successful, so positive, of the practice of
cooperativism, not of a speech, but of a concrete action.
What can we do to make experiences like this and the other 129
similar ones, supported by AGEXPORT, be spread out
through all Guatemala.
So that when other farmers see that with adverse
conditions, those farmers with scarce resources,
with little support, were able to achieve this.
I was thinking about doing a proposal, if the authorities of AGEXPORT
allow me, maybe organize small meetings within
the cooperatives.
Invite rural leaders who are not cooperativists so that they can do
a quick visit, of half a day, or of a day, to those extraordinary examples.
So that they can see that if others could do this in their same country,
with the same government, with the same climate, with the same land that others have,
why can´t they do it too?
I totally agree with you Dr. Polan Lacki.
We have to have this vision of the MIPYMES for the rural development
in the 334 municipalities and in the 22 departments.
In this sense Eng. Buitrón.
What does this technical support, the advice these
producers need to grow, to create job opportunities, and to improve
their conditions in the rural area?
Well, we have discovered a model that prioritizes fundamental aspects.
One is the business management, this means that these organizations
associated, and they are capable of organizing and producing.
But to be on time, with all the topic of competitiveness,
on how to overcome the barriers in the markets and to all that the market demands.
They need that capacity of administration management, managing costs,
of knowing how much their production costs and if it is profitable
in their businesses.
How to improve its management in an integrated manner to be more competitive.
This is one, the other issue is productivity.
Yes, we need to increase to the highest possible the productivity
of the product they are offering to the market.
This means that good practices , safety, certifications, how to achieve
the best product of world class.
The other issue has to do with what Juan mentioned, all the topic of
how these organizations see each other.
When we have a brand, an identity, when the small entrepeneurs sieze these
as their own, their world changes.
Because before, they saw the development pass, they could see that something was given.
But now they are the owners of their future, of their own capacity
of management, and this changes their life.
There are other important issues.
We have discovered that there isn´t only the issue of jobs and income.
There is also the subject of nutrition, food safety, the issue of equity
of women, the environmental subject.
Those are subjects that have to be covered in one same effort, of training,
of technical assistance, of generating the development of local knowledge.
Mr. Juan Santos, as part of corporate chains,
has it helped you in the part of expanding the markets, being more competitive
and taking your products to other countries?
Business chaining helps us carry our products.
Since 6 or 7 years ago, we started to pack
cartons of 5 pounds, we rustically packed our product.
But participating in the fairs supported by AGEXPORT of the
Business Chaining.
There are different presentations of products that come from other countries.
We have to learn, because if not, you are not in the game.
For example you have to make presentations in Flashman,
make presentations in bags, special bags for packing
for the client, it´s different.
Also speaking about the 14 years of the Association AGRISEM and CINASEM,
and seeing the demand of the market, before, the one who sold his product
put the price, but nowadays the consumer sets the price, things are different.
That part we have learned and seen through the international fairs.
It´s interesting to listen to this again, we are really amazed
of all the improvement in the rural area and of the live stories of success.
What has been the contribution of this rural development forum organized by CACIF,
so that the 334 municipalities of Guatemala, in the 33 thousand communities,
get the concept of integrated rural development?
But no more talking as you said before, we need actions that
transform into realities and that definitely these coooperatives,
these producers, improve their life conditions.
There is also the subject of Food Security and Nutritional Security, moreover
of what their businesses can achieve.
I hope , that as a consequence to this successful event that has been done,
we obtain the lesson that Iván Buitrón mentioned,
that we don´t really have to do an extraordinary effort.
We have to improve yields, product quality and volume has to be formed.
To form volume we have to get together, practice cooperativism,
not work as an individual.
I imagine that something simple and basic that we should
understand is that this is done with simple and cheap things.
And with this I mean, that I don´t agree with those
who give ideological discourses that we can´t
come out of poverty and misery if deep
structural changes occur.
Until then, land reform while the IMF
International Money Fund, doesn´t change the policies, nor the world exchange rate,
while the rich countries don´t stop supporting their producers.
Because these ideological speeches, demagocic, what matters
concretely to the farmers, is to have money in their pockets, to improve their income.
And the incomes improve with science, with education, and with training.
And finally to answer your question Mr. Velasquez.
Live examples are already here in Guatemala, there is no need
to go to California, Florida, or to Europe to look for successful experiences,
they are here.
And I repeat what I said previously, if these 130 groups can
do it, why don´t the rest of Guatemalans do it too?
We totally agree with you Dr. Polan Lacki, no more speeches,
no more politics, let´s say yes to the effort, yes to all the cases of success
as we are seeing today with Mr. Juan Santos and to more than the 130 00:19:36,146 --> 00:19:39,775 cases of success that can be presented through the job that
AGEXPORT, CACIF, and many other entities are doing.
Let´s go to a commercial break and then we continue with Investment and Development.
We continue with Investment and Development.
Mr. Buitrón, we see that Mr. Juan is a case of success.
How do the productive chains that you have in all the country help
to the rural development and where do you currently have presence?
We have presence in all the country, in this moment
we are developing approximately around 80
rural chains.
Juan, through CINASEM is one of the examples of support with the cooperation
of the International Fund for Agricultural Development - IFAD.
The subject here is that there is an impressive potential, not only in the agricultural sector.
We are talking about the services sector, tourism, communitary tourism,
health tourism, the sector of agricultural industry, the furniture sector,
forest products.
Like this, we can keep on mentioning a great amount of sectors that
have potential for the rural development.
The issue is how do we open this opportunity, to share the knowledge,
to have the capacity so that these producers can find markets
and they are on their way to development.
Dr. Polan Lacki, the Global Entrepreneurship Monitor, this means that
all the rates of entrepeneurship, says that Guatemala occupies
the second place worldwide in this subject.
What should we do to promote within the country and to move from
entrepeneurship to becoming a rural businessman?
We urgently need, not a change of look,
not to put a patch on the rural elementary education.
The education is totally back to back to real needs
of the rural inhabitants and the urban inhabitants too.
Because these contents are absolutely irrelevant to
the needs of life and of work, when those principles
should be taught, those values of cooperation, of solidarity.
Of how to do an efficient farming, of the importance of having an orchard
to improve the intake of vitamins and minerals.
Of how to get organized to facilitate the solution of their problems.
So, I think that this is urgent if we want to think in a Latin America
with future, with prosperity, with dignity for the Latin Americans
we would need to demand a radical and deep change in the curricular changes.
The access to credit plays an important role Eng. Buitrón.
We had the opportunity last year to speak with Mr. Mohamed Yunus,
the concept of microfinancing , but also much more than the
availability of access to credit for all the entrepeneur projects.
The national financial system in this moment, if we add the quetzales
and the dollars, we have around Q60 thousand million available in the financial system
that have to become available to the micro, small , and medium
entrepeneurs in the rural area.
How do we do to improve this scheme?
There are 2 fundamental elements, one is to obtain that these organizations
be capable of managing and administrating efficiently this credit.
Why would it be a mistake to invest in a credit when the organizations
are not prepared because that would harm them a lot.
The other is, that the bank system is not designing products
that are accesible for these organizations and I believe that there
should also be the subject of innovation.
How can the financial sector be prepared to have products
that the organizations feel it more accesible to their business
or to their economical development.
So we have a significant gap , the banking system,
the microfinance system has not yet achieved this.
We understand very well that they are working on that but there aren´t any
products very concrete that can benefit directly
these organizations.
Dr. Polan Lacki, thank you very much for those messages that you have sent us,
we thank you for having been in Guatemala, in this forum of integrated
rural development organized by CACIF, in Investment and Development.
And every time that you come to Guatemala, we will be happy
to do a new program with you and we hope you have
a safe return towards our friend country, Brazil, thank you very much for having been here.
Eng. Buitrón, we want to know more about all these cases, about the more than 80
cases that you have indicated, we will surely go and film various programs in the areas.
Starting with this cooperative "Tecùn Umán" in Tecpán, Guatemala
and you will surely do your best effort like AGEXPORT.
Mr. Juan Santos, we thank you for having been in Investment and Development,
for having come from Uspantán, Quiché.
For being a successful case worldwide and because probably
all your producers are watching you and they are
more motivated and they will want to know about this success case in their cooperative
"CINASEM" where we also hope to be in a future opportunity
to know every detail of all the real facts that we have spoken about.
Yes, it is important to point out that as Dr. Polan Lacki says,
here in Guatemala we are already doing it, and there are a lot of cases like CINASEM.
The message is that we have to strengthen the rural entrepeneurship,
which is the future of Guatemala.
Mr. Juan Santos, what is the message that you would like to give to all
producers who are watching us in this moment?
The fundamental message as a leader of CINASEM, is to join forces between
the public sector, private sector, and rural farmers.
If we join forces with the government, we will move on, because
our country wants a change.
But as you say, we want a change, don´t wait to start
a strike, a demonstration, it shouldn´t be the road that we´re looking for.
If we joing forces like the globalized world demands, and with
the Commerce Treaty that Guatemala signed with the United States
we haven´t taken advantage of it.
We have to take more advantage of it, joining forces, as producers,
without envy, not being selfish.
Together, producers, rural area and natives, should join forces.
This is the message that I leave to my farmer friends
of different towns and municipalities, communities and landscapes.
Let´s join forces.
Each place has its different crops, we can produce and we can
diversify the crops, thank you.
Of course that we should work as a team and we certainly
are going to make it.
Thank you very much for having been in Investment and Development.
We´ll see you next week in an interesting program
as the one of today.