Peru

THE PROPOSAL

In Peru, the Hand-in-Hand Initiative supports investments in the cocoa and Peruvian scallop value chains. The Government has prioritized the Cajamarca region for cocoa and the Piura region for scallops.

These investments would address critical bottlenecks that cut profitability of products with high commercial potential, especially for small-scale producers. The efforts consist of two main initial interventions that can serve as the basis for a larger programme: first, the development of infrastructure and equipment for the collection and primary processing of fine aroma cacao; second, the development of collection, processing and packaging infrastructure for scallops.

The total cost of the investment is about US$887,754. The average internal rate of return is estimated to be 38.5%. This efforts would benefit some 34,000 value chain actors, including the producers. 

COMMODITIES AND INTERVENTIONS

Development of Infrastructure for Collecting and Primary Processing of Fine Aroma Cocoa and Equipment for Turning Cocoa Mucilage Into Syrup

This intervention would build four centers for the collection, fermentation, and drying of cocoa, as well as a processing plant for making syrup from cocoa mucilage. Farms are already practicing agroforestry management or are ready for the interventions. These efforts would increase cocoa productivity and the quality of their beans. Additionally, they would integrate small-scale producers into the export value chain and increase their income. 

The interventions would cover 400 hectares of land, representing 31.4% of the total cocoa production area of Jaén-San Ignacio in Cajamarca. It would benefit 400 producer families and generate 1,520 jobs. Twenty operators would manage the workers in the collection and processing centres. These efforts would increase the producers' income by 70%. 

The total cost of this intervention is US$402,000, with 80% of the investment to be financed as a 10-year loan and 20% as a non-reimbursable grant. The internal rate of return is expected to be 33% and the net present value US$557,418.

COMMODITIES AND INTERVENTIONS

Development of Infrastructure for Collecting, Processing and Packaging Scallops

This intervention would build collection and primary processing centres, with an an Individual Quick Freezing, or IQF, plant to help small-scale producers boost their prices throughout the year. These efforts would increase the volume of direct exports from small-scale mariculture farmers and help their integration into the value chain.

The aim is to cover 20% of the total production of the medium and small associations (AMYPE) or 336 metric tons of exportable products. These efforts would benefit 100 producer families and create 1,200 jobs. They would additionally create 30,000 related jobs in the Sechura Bay in northern Peru and boost small producers' income by 150%.

The total cost of the investment is about US$485,754, with 80% to be financed as a 10-year loan and 20% as a non-reimbursable grant. The internal rate of return is expected to be 44% and the net present value US$1,440,083.