Creating Inclusive Value Chains in Guatemala
5 ways USAID empowers small farmers in the Western Highlands
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Many communities in Guatemala’s Western Highlands rely on agriculture for their livelihoods, yet they often experience poor harvests and sell their products at low prices. USAID helps these communities by teaching farmers how to improve their harvests and connecting them with more profitable markets.
USAID’s Inclusive Value Chain Strategy, implemented by Catholic Relief Services, focuses on the value chain — the process of a business taking raw materials and adding value to it by turning it into a product and selling it to a consumer. A more inclusive value chain puts small farmers on a level playing field with the buyers, increasing the farmers’ share of profits. Through this project, USAID is increasing productivity, trade, and the economic returns of both small producers and businesses that sell coffee, potatoes, poultry, macadamia nuts, and honey. Here is a snapshot of how this strategy works in Guatemala:
1. Coffee
The nutrient-rich volcanic soil of Guatemala’s Western Highlands is ideal for growing some of the world’s finest coffee beans. Yet, small-lot coffee growers are at a disadvantage in getting their product to market, lacking the sophisticated networks that larger producers have.
USAID works with small-lot coffee growers, like Angelita of PROCAFE, to improve their skills and to create value chain networks. USAID partnered with Intelligentsia Coffee, an American coffee roasting company and retailer based in Chicago, to host a workshop for Guatemalan growers to learn about coffee buying standards and the buying process, and how to improve their coffee growing skills. These skills and market opportunities will create a lasting impact in coffee-growing communities throughout Guatemala.
“Through this, we are achieving our dreams, helping other young people, and moving forward,” said Angelita.
2. Potatoes
Due to low-quality seeds, poor irrigation, and plagues, potato farmers in Guatemala often experience low harvests.
This year, USAID trained 230 farmers on modern irrigation techniques and delivered more than 37,000 pounds of high-quality potato seeds. By using improved farming techniques, farmers like Gustavo Agustín can extend the growing season into summer, when potato prices increase. The genetically modified seeds are plague resistant and increase production — up to 1,200 pounds of potatoes per farmer — resulting in higher profits.
“Traditional seeds are not as productive, but with the improved seed and better agronomic practices I will double my production,” proudly stated Gustavo Agustín.
3. Poultry
Women are critical to the operation of small farms in Guatemala, yet have limited influence in decision making and in managing household income.
Working with 750 families, USAID empowered women by providing training and the supplies necessary to start small poultry farms. Their household incomes have risen and are more secure since USAID helped them form poultry farms earlier this year. Juana Osorio is among the women who have assumed a leadership role in farm management and made contacts with new markets to sell their products. The household livestock project provided her with the means to generate income.
“This project has been a blessing for my family and others in my community — I have started selling eggs and meat, and I am making money,” said Juana.
4. Macadamia Nuts
The macadamia market in Guatemala is dominated by three large buyers who control pricing. Small-scale producers do not have access to this market, which forces them to sell to intermediaries at lower prices, exacerbating inequality.
USAID connected Alianza S.A., a small-scale farmer-run organic macadamia production company, with the San Isidro Investment Fund, an impact investment fund that addresses the financial needs of agricultural small businesses. The fund issued Alianza S.A. a $155,000 loan to build and equip a plant for processing macadamia nuts into kernels that can be sold to international buyers at a higher price. With increased production and exports and lowered freight costs, the company can add 100 smallholder farmers into its supply chain and pay them more, while stimulating employment and livelihoods in the area.
Alianza S.A.’s General Manager Javier Jiménez noted the impact USAID’s support will have on his community:
“Behind the producers, there are families. The new processing plant will bring employment for 40 community members. These jobs mean economic growth, social development, and less migration to the United States.”
5. Honey
The center of any honey production is the queen bee, but raising healthy queen bees can be challenging.
To help Guatemalan honey farmers learn this skill and more, USAID provided a training program in queen bee propagation, apiary management, and business development. To help them attract international buyers, the training also provided branding and marketing information that reflect the honey producers’ commitment to inclusiveness and producing quality products. As a result, the honey cooperative Copichajulense exported $96,000 worth of honey products to the German company GEPA, which specializes in fair trade products — a 37% increase in sales compared to an equivalent amount of exports they sold before the training.
Delfino Ernesto Galindo, a farmer who attended the training, reflected on the results:
“Honey is my life. My goal is to be a better producer and grow my business to provide a better living for my family. USAID is helping me reach my goals.”
USAID’s commitment to inclusive value chain development strengthens producers’ skills and access to profitable markets. It empowers women, youth, and indigenous peoples so that they can be the drivers of economic growth and stability within their communities.
About the Author
Benjamin Ilka is a storyteller and visual media specialist at USAID’s Mission in Guatemala.
