3.2.4.4. Costaleo Opportunities and Constraints Analysis
Framework | Situational Analysis | Opportunities to Upgrading | Constraints to Upgrading | Recommendations |
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Structural Elements of Value Chain |
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End Markets | Consumers at supermarkets, hotels, and restaurants internationally |
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Lack of means and economic incentives for farmers to invest in quality upgrades |
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Business Enabling Environment | Limited and sporadic government support for training, extension and financial services |
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Vertical Linkages |
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Horizontal Linkages | Most farmers belong to coffee cooperatives, but they are not functioning well | Prevalence of cooperatives | Cooperatives lack technical expertise, marketing experience and commitment of members | Strengthen cooperatives through training, and once cooperatives obtain adequate knowledge, encourage them to buy coffee in cherry stage and perform more services (drying, grading, sorting) |
Supporting Markets |
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Vibrant commercial banking sector and prevalence of cooperatives that could provide services |
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Dynamic Elements of Value Chain |
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Value Chain Governance | Governance is relational, but the information transfer to farmers is not complete, and knowledge and skills are lacking | Relational governance patterns allow producers to supply differentiated products to the market, which can translate into higher profit margins | Current lack of market information, access to credit for upgrading, and technical know-how constrain producers' ability to differentiate | Improve access to market information, access to credit and improve producers' and cooperatives' knowledge of harvest and post-harvest procedures for specialty coffees |
Inter-firm Relationships | There is a lack of trust in vertical relationships among farmers and traders, as well as in cooperatives, where side-selling often occurs. Market information does not flow effectively down the chain to farmers |
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