Paraguay – Cooperative Development Program (CDP)

Increasing Farmers’ and Entrepreneurs’ Incomes

The USAID-funded Cooperative Development Program (CDP) is a five-year initiative to increase overseas farmers’ and entrepreneurs’ incomes through participation in the global economy. Under CDP, ACDI/VOCA provides technical assistance and fosters local, national and international partnerships to help a wide variety of cooperatives move up the value chain and become sustainable in Bolivia, Brazil, Colombia, Paraguay and Russia.

CDP/Paraguay is designed to enhance agricultural cooperative and producer association development in the eastern half of the country. CDP targets agribusinesses to benefit the larger economy and many of Paraguay’s poorest, most of whom are involved in agriculturally based enterprises. ACDI/VOCA works with institutions to improve governance, management and financial systems. CDP also stresses the importance of developing market-driven member services. By providing training and other consultative services in management, strategic planning, sound business practices, internal controls, production, and marketing, cooperatives and associations empower smallholder farmers and small-scale entrepreneurs to increase the capacity of their enterprises and generate more income.

The objectives of CDP/Paraguay are met through short-term technical assistance to Paraguayan cooperatives. ACDI/VOCA, working with second-tier cooperative organizations and local governments, identifies small to medium-sized cooperatives and associations that have promising business models but that lack the technical, operational or organizational knowledge to be fully successful. Working with each cooperative, CDP/Paraguay helps develop a technical assistance program and facilitates the arrival of volunteer consultants. These consultants are highly qualified professionals who volunteer their time to help the organizations address their needs. After familiarizing themselves with the cooperative thoroughly, the consultants make recommendations and work with the organization’s directors, managers, members and employees to develop a work plan to move the cooperative in the direction it seeks.

As of November 2008, 39 volunteer assignments have benefitted over 61,000 Paraguayan cooperative and association members through support to 20 cooperatives, 3 second-tier cooperative organizations and 2 municipalities. Organizations have received assistance in operational and financial management, business plan development, cooperative education for new cooperatives and/or members, improved beef production, the commercial development of livestock feed, animal nutrition, banana production and post-harvest handling. It is expected that an additional 16 volunteer assignments will take place before the program ends in June 2009. Most recently, the technical areas for which volunteer specialists are most requested include business plan development, swine and cattle production and management, tomato and green pepper drying, cotton processing, herb processing and cooperative restructuring.

In 2006 ACDI/VOCA established agreements with two second-tier cooperative organizations, Credicoop and Cepacoop, to work in identifying member cooperatives and associations in the eastern region of Paraguay. In March 2008, based on the success of these agreements and the project’s positive impact on the cooperative community, ACDI/VOCA signed an agreement with the Federation of Producer Cooperatives (FECOPROD) to extend assistance even further.

Along with short-term technical assistance, CDP/Paraguay has focused on capacity building by providing opportunities for cooperative organizations in Paraguay, Bolivia, Brazil and Colombia to come together to share lessons learned, seek solutions to current challenges and build relationships among cooperative organizations in Latin America. In 2006 ACDI/VOCA sent Paraguayan cooperative directors to participate in a regional seminar on “change management” held in Bogotá, Colombia. This seminar gave the directors opportunities to share their experiences and hear about different strategies adopted by other cooperatives to overcome internal and external issues affecting operations. Building off the conference, CDP/Paraguay played host to the 2008 Worldwide CDP Modernizing Business Culture within Agricultural Cooperatives Conference. This conference hosted representatives from Paraguayan, Bolivian and Colombian cooperatives; second-tier cooperative organizations; a local university; USAID; the secretary of agriculture and livestock of Paraguay; the University of Arizona; and ACDI/VOCA. The conference focused on bringing cooperatives together to share ideas on how to ensure that organizations stay true to their social missions while still maintaining a business-oriented approach to their operations. In 2009 another workshop is planned at which the University of Arizona’s Bureau of Applied Research in Anthropology will present its final results on studies conducted on cooperatives in Brazil and Paraguay. The university will make recommendations on how cooperatives in Latin American countries can be reshaped to remain competitive in local, national and international markets while adhering to their social mission.

For more information, contact David Lindgren at dlindgren@acdivoca.org.

Updated: 11/08

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