FIELD Brief 13: An Anchor Firm Approach to Strengthening Value Chain Competitiveness: A Look at the PRODEL Program in Ecuador

USAID’s Ecuador Local Economic Development program—or “Programa de Desarrollo Economico Local” (PRODEL), as it is known locally in Ecuador—was launched in November 2007 to identify and address major opportunities and constraints to growth in the market system, while ensuring sustainable impact at the household level. Awarded through the FIELD-Support LWA and led by ACDI/VOCA, PRODEL builds on the important role both private and public sector actors play in overcoming obstacles to sustained growth, such as producers’ physical isolation, their limited knowledge of end-market requirements, difficulty in accessing financing for working capital or investments, or challenges attaining economies of scale for profitable participation in value chains.

Working with lead or anchor firms in a value chain can help multiply results and significantly increase incomes for low-income populations. In this FIELD Brief, we explore how PRODEL is leveraging these anchor firms in order to increase the economic potential and outputs of low-income farming communities in Ecuador’s vulnerable geographic areas.