Frank Hartwich et al. / Int. J. Food System Dynamics 3 (2010) 237-251
the case of special relationships of friendship and mutual dependency. For the majority of the farmers,
however, this scheme does not provide any information on options for innovation. And often the farmers
are caught in relationships that are unfavorable to them because of the low, sometimes unfair, prices paid
to them and ambiguous interests on credits. This credit and procurement scheme via the beneficios has
been the dominant scheme for many decades. However, recently through the appearance of improved
telecommunication, niche markets and the demand for quality, alternative schemes have developed that
sideline the activities of the beneficios.
3.2 International buyers / exporters - led innovation trajectory
There are larger buyers of coffee who maintain large processing and calibrating plants in San Pedro Sula
and whose main business is exporting coffee to the buyers in North America, Europe and Asia. Often they
sell through intermediary coffee traders and brokers. The larger among those exporters include
HONDUCAFE, SOGIMEX, CIGRAH, BECAMO, BONCAFE, Molinos de Honduras and CADEXSA, but there are
also a handful of smaller exporters and even some of the beneficios have recently gained export licenses.
SOGIMEX and CIGRAH are part of larger coffee trading groups, ECOM Coffee Group in the case of
SOGIMEX and Mercon Coffee Group in the case of CIGRAH. The exporters receive most of the coffee from
the beneficios that operate in the coffee production regions but many have also set up direct relations
with coffee producers or groups of producers. The reason for the letter is that in direct relationship with
the growers and under specific contracts the exporters can control the quality of the coffee and sell it
according to the region. Coffee bought from beneficios often comes in mixed quality and no tracing back
to the origin is possible. In fact, both SOGIMEX and CIGRAH, but also other exporters, though to a lesser
extent, have recently engaged in sourcing certified coffee directly from the producers. Under these
schemes the exporters exceed that the growers produce und the control of certifiers such as Rainforest
Alliance, UTZ Certified or MAYACERT. Often it is actually the exporters who identify producers that are
willing to produce under certification standards and facilitate the link to the certifiers.
Certifiers are working with teams of assessors and auditors. Between 6 till 18 month can pass from the
first training till the certificate is given to the growers. During this time they provide guidance on how to
comply with the standards in capacity strengthening workshops. Often they also work through farmers’
organizations; the organizations send a technician who then trains the growers back home. Rainforest
Alliance, for example, receives support in their training efforts from the United Nations Program for
Development (UNDP). The certifiers also help the producers finding markets (buyers) for their coffee.
Because growers often need technical support to apply the standards (further to learning about the
protocols from the certifiers) CIGRAH and CADEXSA, for example, maintain R&D departments with a
number of field technicians which help farmers to optimize production under certification rules. It is these
advisory services that have been a source of substantial improvements in the management of coffee
plantations in Honduras over the last years. The certification under Rainforest Alliance and UTZ Certified
does not only follow criteria of good agricultural practices such as reduced use of pesticides (the use of
certain toxic ones is forbidden), but also promotes productivity, economic sustainability and social
standards. The exporter’s knowledge on optimized coffee production comes with the hiring of R&D staff
who often has worked in research and development organizations such as IHCAFE and CATIE. ECOM
Coffee group has also supported a group of coffee specialists which dropped out of a regional coffee
development program, PROMECAFE, allying with the French CIRAD maintaining a coffee research hub in
Nicaragua. CIGRAH, with the support of the German GTZ, and in partnership with IHCAFE set up a national
contest for quality coffee, the “Cup of Excellence” which brought to the mind of many producers the
potential that lies in selling quality coffee. Companies like CIGRAH also help producers’ organizations
become more efficient in the administration of their operations. SOGIMEX has launched a certification
campaign throughout the country and about 4,000 producers are now UTZ-certified. Overall the number
of producers that produce under UTZ Certified, Rainforest Alliance and other certifiers may not reach 10%
but the number is growing.
3.3 Input suppliers-led innovation trajectory
A range of companies in Honduras specialize importing fertilizer, agrochemicals, biological products, farm
implements and machinery and selling them to shops and businesses for further distribution to producers.
There are two to three large companies how engage in this business such as SEAGRO and Atlantida
Agncola and a number of smaller ones. These companies are not specialized in inputs in coffee production
but work with all agricultural subsectors; however coffee constitutes one of the important subsectors. It is
common among these companies that they organize training events and demonstrations in which farmers
of a certain region are invited to attend. These events are usually organized together with agents that
maintain close relationships with growers, e.g. farmers organizations, the parastatal coffee development
board IHCAFE or certain projects of development agencies. The large input supplier companies also
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