STRATEGIES FOR INTERNATIONAL DEVELOPMENT

Ending Rural Poverty in Guatemala

How do poor farmers increase their incomes?

An Example from Guatemala’s Western Highlands

Chimaltenango

Farmers in Guatemala’sWestern Highlands

• 1.5 to 5 acres of land• Annual incomes of $350 to $1,150 per

family• Grow corn and beans for food• Grow coffee, vegetables, and fruit for

income• Very low productivity• Do not husk and dry coffee

A Focus on Coffee

118% INCREASE IN INCOME FROM COFFEE

$0$20$40$60$80

$100$120$140$160

BaselineIncome

IncreasingProductivity

Husking andDrying the

Coffee

SellingDirectly to aMajor Buyer

Pilot Project -- 5 Communities

2005 ---------------------- 2006 ----------------------

$68

$119

$142$149

INCREASE PRODUCTIVITY OF

COFFEE TREESPROCESS COFFEE

SELL TO A MAJOR BUYER

Prune trees Compost organic

fertilizer Apply fertilizer at

root ends of trees Improve shading of

coffee

Harvest only red beans

Dehusk beans Ferment beans

overnight Wash off sticky

coating Sort beans Dry beans from 54%

to 10-12% moisture

Meet with major buyers

Negotiate sales Make business

plans Send samples for

testing

What farmers have to do to get out of poverty…

Increasing Productivity -- Composting

Increasing Productivity -- Trenching and Fertilizing

Increasing Productivity -- Shading

Increasing Productivity -- Shading

Increasing Productivity -- Pruning

Increasing Productivity -- Pruning

Processing -- Harvesting only red beans

Processing -- Dehusking

Processing -- Dehusking

Processing -- Fermenting

Processing -- Washing

Processing -- Sorting

Processing -- Drying

Improving Processing -- Drying

Selling to a Major Buyer -- Transporting

Pilot Project – 5 Communities118% Increase in Income from Coffee

2005 2006

Area (1/4 acre) 1 Area (1/4 acre) 1

Productivity(Quintals/ 1/4 acre) 4

Productivity(Quintals/ 1/4 acre)

7

Production (qq) 4 Production (qq) 7

Coffee Beans (qq) 1.46Price $17 Price $102Income $68 Income $149

How You Can Help• 3,900 families have requested our assistance• In 2007, we started the program with 1,450 families• In 2008, we would like to expand it to reach at least,

1,950 families

Cost for 1,950 families: $197,200 ($101/per family) We Have Raised: $137,200We Need. $ 60,000

• Help us fund the 2008 Guatemalan coffee program to reach 1,950 families.

“I like doing all of the practices… the soil is no longer hard, but richer, softer, better.”

“Our women’s group was initially uneasy about working together because they had never done it before; but once we all got used to it, we liked it.” Joselina Gorgonia (Guatemala)