USAID/Nicaragua: USAID and Wal-Mart sign agreement

USAID and Wal-Mart sign agreement

MARKET FOR SMALL AND MEDIUM-SIZED PRODUCERS

The United States Agency for International Development (USAID)signed an agreement with Wal-Mart Central America that will provide assistance in cultivation techniques, farm management, post-harvest practices, sanitary and health requirements and marketing to small and medium-sized producers that participate in programs financed by USAID.

This new agreement picks will build on a 2003 agreement between USAID and Hortifruit, which opened the doors to local and regional supermarkets as well as international markets to some 1,000 small and medium-sized producers. With the new agreement with Wal-Mart,which recently acquired majority stockholder positions in the Central American supermarket chains to which Hortifruit belongs, the number of producers benefited could increase to 3,000. By diversifying their crops with fruits and vegetables with a high-market value, using greenhouses and drip irrigation, producers participating in programs financed by USAID can harvest all year long. Annual incomes have tripled and, for the first time, these farmers can count on a stable monthly income for their families.

USAID ECONOMIC GROWTH PROGRAMS

The alliance with Wal-Mart is an activity under USAID’s program to increase trade and investments through a competitive, market-oriented economy. USAID is providing over $14.5 million in 2006 to help thousands of Nicaraguan producers and businesses diversify their harvests and products, and to comply with international market quality standards in order to take advantage of the opportunities of the CAFTA-DR free trade agreement with the U.S. and other free trade agreements. Together with the University of Michigan, Catholic Relief Services, the Adventist Development Relief Agency, Project Concern International, Save the Children, Technoserve, and the Rainforest Alliance, USAID programs are providing technical and financial support to more than 20,000 producers throughout the country.