Clustering efforts of small asparagus producers in west-central Peru result in higher returns

USAID’s PRA Project is helping small farmers organize their supply, increase quality and productivity, and integrate forward in the value chain, ensuring a steady demand and higher prices for their production.

Santa Sofía del Perú grants steady demand for Casma small asparagus farmers. Located in Casma, it processes fresh asparagus for international markets.

Casma province in the Ancash region, located in west-central Peru, is an asparagus producing area. Of a total extension of 800 hectares, 500 are owned by 8 companies and the rest is distributed among small farmers who work in their 1 to10 hectare land units.

Like other small farming areas, fresh green asparagus commercialization in Casma was in the hands of gathering middlemen and dealers who sold to big companies. These agents would initially pay small producers high prices to motivate and engage them. Later –in an unfair manner- the agents would change prices and extend the payment deadline from one week to one month at best, tying the due payment to the product sale in the following harvest. This is the case of asparagus small producer Pío Robles who owns 1.5 hectares and had to sell his production to gathering agents who paid him untimely and less than the market price.  

In order to boost productivity of asparagus production and improve the negotiating ability of small farmers to access adequate prices by reducing trade intermediation levels, the PRA Project has successfully integrated small producers to better organize their supply and has connected them with Santa Sofía del Perú, company located near the growing area and who directly pays and provides them with cash advances.

The PRA Project has also provided small farmers with technical assistance to adopt trade production standards enabling them to grow and harvest steady amounts of a higher quality product for two annual farming seasons. The asparagus production during the November-December 2010 season doubled the output of the previous year’s season while final prices paid to small producers increased by 16%.

These improvements have significantly impacted Pío Robles’ production. Not only did he sell more than 8,000 kg to Santa Sofia del Perú in the FY2011 first quarter, but he has also improved health management and crop fertilization to increase the product’s quality. Additionally, he has implemented the PERSUAP (Pesticide Evaluation Report and Safer Use Action Plan) methodology for safe handling of agricultural pesticides in order to protect the environment and human health.