Companies and co-op organizations
in San Pedro and Concepcion, two of the departments
with greater rural poverty in Paraguay, were facing
a particular difficult situation in 2003. They were
receiving orders from Japan and Korea for sesame well
above their supply capacity. this shortage represented
real hurdles to purchase small quantities of sesame
from small producers living in this area during the
harvest season. Although cultivation and harvesting
of sesame could be carried out by machine, the high
demand was for seeds harvested by hand.
While exporting companies and small producers have
had a positive relationship, it was possible to improve
this relationships by promoting the quality of sesame
that was in high demand as well as providing training
assistance regarding the necessary care to the seeds
during the harvest and by openly providing transparent
information on sale prices.
During 2004 and 2005, USAID’s Paraguay Vende
program signed an agreement with four companies and
one co-op to promote the cultivation of sesame and
assist in the search for alternative markets and higher
value-added segments. The agreement with the Shirosawa
Company was to increase the crop area. The agreement
with One World Trade and the Nortena Cooperative was
to assist in the introduction of organic sesame and
the agreement with Chung Bo was for assistance in
the collection of second quality-sesame to produce
sesame coffee or oil. An agreement with Kemagro was
for guidance on demand from US companies for a specific
variety of sesame called 'Inia'. These actions constituted
the largest effort by Paraguay Vende in the assistance
offered to Paraguayan companies.
The sesame opened the door for change in San Pedro
and Concepcion. The Paraguayan Chamber of Sesame estimated
that the export of sesame in Paraguay rose by $ 20
million between 2004 and 2007. The increased export
of the four companies linked to the overall assistance
from Paraguay Vende was in the order of $ 8.4 million.
More than 50% of this amount went straight to the
pockets of small farmers. Thanks to sesame, thousands
of poor rural homes gained access to a more dignified
life.
Paraguay Vende assistance in Concepcion and San
Pedro made way for many rural entrepreneurs to begin
activities in agri-business and helped foster good
relationships between companies and producers of sesame
that continues today.
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