Junta Nacional del Café- JNC

Farmer organizations in value chain policy making

Defense of the cooperative model

Meike Carmen WillemsResponsable del área de Cooperación al Desarrollo e

Incidencia

Junta Nacional del Café

Institutional Mission:Strengthen management and negotiation capabilities of Peruvian coffee organizations.

Strategic Objectives:• Strengthening the negotiating capacity of national

and international influence• Promotion coffee territorial development• Support for production and business

competitiveness of the coffee organizations• Development of internal capabilities

MembersCurrently: 52 organizations (cooperatives and

associations), with 55,000 producers

Peruvian Coffee:

• 405 000 hectares, in 338 rural districts, 68 provinces by 165,000 families.

• Coffee has been the main agricultural export product for 25 years.

• 32% of the coffee is certified extension as differentiated coffees, (organic – sustainable).

• 95% of production is exported to 42 countries, Europe being the main destination.

Paradoxes Peruvian Coffee Sector

1st agro export crop

1st exporter of coffee produced with environmental responsibility criteria, as organic, Fair Trade, Bird Friendly and Rainforest Alliance

• Unwillingness of governments for sectorial consensus, and therefore lack of policies to support the sector

• Tax system puts the association of small producers at a disadvantage

• Farm property not formalized (approx. 50%)

• Poor development of technologies, innovation and agricultural extension

• Old Coffee plants (average 20 years), poor yields

The development challenge (relating to smallholders and value chains/market access) and how the challenge was

identified

• Representatives of the new government (2011), Ministry of Economy, calls for repeal of the law that requires the Cooperative Act, claiming illegal in their approval.

• Tax policy seeks to break the cooperative model• Defense of the cooperative model and

recognition of Cooperative Act.• Intervention of the SUNAT to the coffee

cooperatives ignorance of the cooperative model. It came to seize the bank accounts of some cooperatives.

• Achieving the lifting of sanctions to cooperatives.

What evidence was required and why (1 slide) and what research or study work was undertaken (e.g. desk study, farmer or market

surveys, legal document review, etc) (1 slide)

• Program information and precise actions of SUNAT

• Because of the situation and the difficulty of the problem (though of cooperatives by SUNAT) the members were consulted of the problems there was having with SUNAT to develop advocacy strategy and pressure.

How was the research evidence used to formulate feasible, evidence-based propositions for changes in specific policies and institutional arrangements in support of aspects of smallholders

participation in value chains

• Mainly to describe the criteria governing the existence of Cooperatives (embedded in cooperative law) through a specialist.

• Meeting with representatives and their advisers to refine the proposal.

• Cases of cooperatives that were being tapped (through surveys and interviews)

• Broadcast JNC events (congresses coffee, meetings and workshops).

Advocacy methods

• A document of political support by an expert in the subject cooperative (parliamentary advisor).

• Media and political pressure to curb the actions of SUNAT. Press Releases

• Strategic alliance with other agricultural unions through CONVEAGRO.

• Prepared a dossier information for decision makers (especially legislators and ministers).

• Broadcast JNC events (congresses coffee, meetings and workshops).

What were the policy or institutional change outcomes? Who has benefitted, in what way have they benefited and are the

outcomes sustainable (2 slides)

• They managed to stop the order of MEF, mainly by social pressure (up in Lima) and pressure from congressmen identified with the subject.

• Not able to annul the existing sanctions SUNAT (foreclosures persist) and do not want to implement the recommendations. They have no interest in learning or promote the cooperative model.

• Enhanced support of agricultural unions and state sectors

What (if any) institutional changes has your organization put in place as a result of your experiences

• The JNC has the reputation of being a proactive union.

• Policy proposal: stress the social benefits (increase of family income), technical support (pruning system), financial support (payment method)

Main challenges for Farmer Organizations in supporting value chain development

• Shared Vision • Efficient and transparent business

management • Culture of quality products • Ensure favorable outcomes for partners • Build partnerships with public

institutions • Accountability • Democratic practices

How important is research based evidence-to-policy and how can this be strengthened?

• Most governments ignore the reality of the agricultural sector. Hence the need to negotiate with validated proposals (with sustainable results, economic and social).

• To do this you have to have systematized processes (production, economic, organizational, environmental, etc.).

• Professionals (researchers) involved

Any other key lessons learnt or observations?

• Build alliances with institutions like CONVEAGRO, where they meet agricultural unions, international agencies, State

• Promote local and regional investments.

• Increase the knowledge of producers and the capacity to put social pressure (Mobilization)

• “There is no morning without coffee”