El Salvador

Non-Traditional Agriculture Export (NTAE) Production and Marketing Project

Project goal: To increase production of NTAE crops by cooperatives and other participant farmers, and improve the linkage of these producers with processors and international buyers. The project will result in the increase in production and export of NTAE crops and an increase in the income of participant farmers

Funding: USAID Cooperative Agreement $10.9 million

Time frame: June 1991 to June 1998

Results
Through the Non-Traditional Agricultural Exports (NTAE) Production and Marketing Project, CLUSA worked with 128 cooperatives and 6 secondary organizations to expand and improve production, processing and marketing of NTAE products by small-scale grower groups and to strengthen them as businesses. They were provided training in business management, contract negotiation, administration and strategic and long range planning. Assistance was provided in development of marketing linkages with private exporters, processors and international buyers.

In the period 1990 through 1993, the cooperatives handled two-thirds of El Salvador's exports of fresh produce. The project pioneered in organic production, in exporting organically grown and certified coffee, cacao, sesame and cashew to markets in the U.S., Europe and Japan and in sales and distribution of organic vegetables and other commodities to local restaurants, hotels and supermarkets. It also exported conventional vegetables, melons, sesame, flowers, and hot peppers.

During the 1988-1998 period sales totaled $34 million resulting in major increases in farmer income, benefiting 60,000 producers and their families. The project developed and delivered courses to thousands of farmers in new agricultural techniques, cooperative management, group dynamics and legal responsibilities, and provided extensive training to Salvadoran agronomic staff who trained farmers in production methods and developed agricultural production manuals. Two farmer organizations involved in the project won the country's first major environmental awards for their organic production work. CLUSA assisted local project personnel and farmers to launch PROEXSAL, an import/export cooperative owned by farmer cooperatives and grower groups with some exporters. PROEXSAL provides quality control for horticultural crops shipped from the rural areas to the city for sale and has imported and sold US and Guatemalan horticultural commodities. It continues to market fruits and vegetables grown by Guatemalan and Salvadoran farmers, 80 percent of which are organically produced, to restaurants, hotels and supermarkets. Former local project staff also founded CLUSA de El Salvador, a non profit technical services organization, which provides training in enterprise development and organic production, packing and processing.

As of June 30, 2003 CLUSA de El Salvador had signed 26 contracts for its services with a value of $2 million. CLUSA continues to supply limited assistance to PROEXSAL and CLUSA de El Salvador.

• National income per capita (2002 estimates): $2,080
• Annual GDP growth rate (2002 estimate): 2 percent
• Agriculture: coffee, sugar, corn, rice, beans, oilseed, cotton, sorghum, shrimp, beef, and dairy products
• Major exports: offshore assembly exports, coffee, sugar, shrimp, textiles, chemicals, electricity
• Major imports: raw materials, consumer goods, capital goods, fuels, foodstuffs, petroleum, and electricity

• Population (July 2003 estimate): 6,470,379
• Annual growth rate (2003 estimate): 1.81 percent
• Languages: Spanish, Nahua (among some Amerindians)
• Literacy: 80.2 percent

• Location: Central America
• Area: 21,040 square kilometers, smallest Central American country, slightly smaller than Massachusetts
• Capital: San Salvador