CRESOL BASER I Strengthening the production capacity and income generation of family farmers and MSMEs in agricultural value chains through education and training activities
In the Brazilian context, many family farmers or MSMEs linked to agricultural chains rely on the Food Acquisition Program (PAA) and the National School Feeding Programme (PNAE) to market their products. These programs face several challenges: the PAA had a budget reduction of 84.6% in the last five years and the PNAE faced logistical and legal difficulties in 2020 to provide food to school children during the pandemic. This situation led to the total or partial suspension of contracts with family farmers. A study put forward by NEPAM/UNICAMP suggests that 69% of family farmers experienced negative changes when supplying the PNAE. In terms of income, half of the country’s family farmers (51%) posted reduced income, with an average loss of 35% in gross monthly household income.
Similarly, many family farmers also depend on the public sector for access to credit at subsidized interest rates for their regular operations and investments. Brazil’s Plan Cosecha, comprising the Pronaf program, performed this duty suitably in the past, but in the last two years agricultural demand for credit has grown by an average of 20% and the programs are no longer able to meet it.
EMBRAPA researchers pinpointed common challenges in strengthening and promoting the experiences of family farming and MSMEs in agricultural chains: low management and governance capacity at the level of individual and collective enterprises; low access to credit for structural investments; low socio-economic inclusion of women and youth; low access to and use of digital technologies; difficulty in accessing institutional and private markets; and difficulty in accessing public policies.
The proposed project, “Strengthening the production and income-generating capacity of family farmers and micro, small and medium-sized enterprises (MSMEs) in agricultural value chains”, is designed to complement the Huruma Fund loan allocated to Cresol. It sets out to improve the flow of finance to smallholder farmers and to expand and to improve the technical assistance models for smallholder farmers that Cresol currently uses. The general aim of the program is to provide technical advisory services to rural cooperative enterprises and entrepreneurs of interest to the Cresol System, with a view to professionalizing and strengthening them in economic, organizational and social terms, thereby generating a better relationship between the cooperative and Cresol.
Adeop has been selected as the provider of the first activity of the project, focusing on consultancy to implement a training and technical assistance program for farmers, with the emphasis on youth and women.
Country: Brazil
Total project amount: EUR 660,000
% Financing TAF Huruma: 90%
Field of intervention: Value chain upgrading
Status: In progress
Project start / end date: March 2024 / March 2026