Guatemala

THE PROPOSAL

In Guatemala, the Hand-in-Hand Initiative supports investments in the Adyacencia Zone and in the Polochic Valley, with the objective of promoting agricultural economic development by incorporating innovation, technology, infrastructure and production support services, thus contributing to the reduction of poverty and food insecurity.

The investment programme has four components:

• Inclusive and resilient agro-productive promotion in prioritized value chains
• Agro-industrial development and commercialization
• Infrastructure for production and related services (under development)
• Sustainable management of natural resources and green transformation (under development)

The total investment cost of the first two components is US$28.39 million, with an internal rate of return of 33% and net present value of US$16.7 million. The investment would benefit 17,500 households, comprising 91,000 farmers, including 39,000 women and 23,400 young people.

COMMODITIES AND INTERVENTIONS

Agricultural Development in Cardamom, Coffee, Cocoa, Basic grains and Other Agroforestry Crops

The intervention is focused on establishing new agroforestry systems and rehabilitating existing ones. Such efforts would contribute toward increasing the volume of sustainable production.

With an investment of US$13.2 million, 12,500 producers would receive training to assist them in sustainable agricultural production. It would also generate 23,241 hectares of new or renovated agroforestry systems. The internal rate of return is estimated to be 34%.

R&D and Innovation on Farm

The goal is to improve the quality of inputs and production. This will be achieved through centres for selection of clones and cultivars, and nurseries for their reproduction, and through adoption of digital technologies and agriculture 4.0.

The total investment cost is US$2.4 million, with 14% internal rate of return. The investment would establish one analysis and selection center and two nurseries with commercial activities; it would enable 1,000 producers to adopt new technologies on 500 hectares of land and provide 3,500 producers with access to improved plants.

Agro-industrial Development in Cardamom, Coffee and Cocoa

This intervention establishes processing units for cocoa and coffee, and cardamom-drying units to support their production.

It is estimated that US$1.8 million would establish 20 cocoa processing units, 20 cardamom-drying units and 10 coffee processing units, benefiting 2,180 producers. The internal rate of return is estimated to be 22%.

Strengthening Organizations and Associative Marketing

This intervention aims to promote associative to strengthen the commercial capacities of local producers, as part of the agro-industrial development and commercialization component of the Hand-in-Hand Initiative.

It is expected to improve market access and the negotiating capacity of 2,500 producers, and increase the sale price of marketed products by 10%. The internal rate of return is estimated to be 44%.

Strengthening Other Value-Adding Initiatives

This intervention aims to increase 1,700 producers' incomes through secondary processing of cocoa and cardamom by promoting 20 enterprises.