1 / 26

OPPORTUNITIES OF NETWORKING SYSTEM IN PERU: THE CASE OF WARRANTS FOR RICE PRODUCERS

OPPORTUNITIES OF NETWORKING SYSTEM IN PERU: THE CASE OF WARRANTS FOR RICE PRODUCERS. ALEX GIRÓN GORDILLO Peruvian Ministry of Agriculture. Bogor, November 2005. RICE IN PERU: ISSUES AND ALTERNATIVES. WARRANT AS AN ALTERNATIVE. Some history of rice in Peru.

sharla
Télécharger la présentation

OPPORTUNITIES OF NETWORKING SYSTEM IN PERU: THE CASE OF WARRANTS FOR RICE PRODUCERS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. OPPORTUNITIES OF NETWORKING SYSTEM IN PERU: THE CASE OF WARRANTS FOR RICE PRODUCERS ALEX GIRÓN GORDILLOPeruvian Ministry of Agriculture Bogor, November 2005

  2. RICE IN PERU: ISSUES AND ALTERNATIVES WARRANT AS AN ALTERNATIVE

  3. Some history of rice in Peru • Rice was introduced in 16th century: south coast valleys. • Expansion to the north coast. Main productive region. • Mid 20th century: expansion to jungle and wet zone.

  4. 8% GNP TIPO I Non-traditional export 73,000 ha Asparragus Mango Páprika Olive Marigold 46% GNP TIPO II Extensive agriculture: 1’450,000 ha Potato Paddy rice Hard yellow corn Coffee Sugar cane Cotton 41% GNP TIPO III Local market agriculture: 860,000 ha Onion, tomato Banana, Mandioc, White corn, 5% GNP TIPO IV Subsistence agriculture: 448,000 ha Wheat Andean native grains and roots

  5. Importance of rice production

  6. Seasonal sowing and harvest

  7. Rice chain of value Null /low power of negotiation RETAILERS LOCAL PRODUCERS MILLERS FINAL CONSUMER AGRO INDUSTRIAL PROCESSING INPUTS & SERVICES AGRICULTURAL PRODUCTION TRADE WHOLESALERS: Laboratories, machinery MIDDLEMEN & TRADERS High power of negotiation IMPORTERS

  8. Factors affecting rice production • Scattered and small-scale property. • Weak organization. • Lack of formal credit. • Obsolete technology. • Few investments in infrastructure. • Seasonal over production. • Influence of foreign prices.

  9. Claims and alternatives X • LOCAL PRODUCERS’ CLAIM: • WTO and local legislation Not possible. SEASONAL OVER-PRODUCTION REDUCTION OF CONDITIONS + = RICE IMPORTS + MIDDLE AGENTS • To avoid pressure and demands of producers, the use of a financial mechanism was supported and promoted by private organizations and Government. This financial mechanism is called warrant.

  10. Warrant for rice producers • Financial practice that promotes the deposit of agricultural products in a warehouse in order to obtain a deposit certificate, to be used as a collateral guarantee for financial entities that grant credits. • Alternative to the financing problem and the provision of guarantees against low seasonal prices, allowing producers to access formal credit.

  11. Warrant for rice producers • Proposal given by producers, in order to avoid actual price decreases. • As a market economy, Peru does not have any commitment to offer the loans supposed in warrants. So this became a private initiative of rice producers organizations. • Government just could give the basic legal framework and tools for its implementation.

  12. Warrant procedure PRODUCERS SOLICITUDE TO THE BANK PRIVATE BANK PRODUCERS ORGANIZATIONS BANK REVIEW AND APPROVAL EMISSION OF WARRANT AND DEPOSIT CERTIFICATE WARRANT ENDORSEMENT TO THE BANK PAY OFF AND LIBERATION OF FREIGHT GOODS RENOVATION OF CONTRACT (NEW WARRANT)

  13. Implications of warrants in agricultural sector • Warrant permits rice producers to obtain better quotations for their final production. • The forced promotion of associative strategies –one condition to be fulfilled in order to obtain the warrant approval-, empowers agricultural producers.

  14. SUPPORTING RICE PRODUCERS: INFORMATION NETWORK INFORMATION TO DECIDE

  15. Information and networking • Peru has one of the lowest indicators of internet access in South America: only 4.8 of each 100 habitants in urban areas have a computer in home. • Digital divide is a great problem in Peru, in rural areas the interconnection is very difficult (density reaches just 1% of the population in these areas).

  16. Local conditions • Local phenomenon known as “cabinas de internet” (internet booths): places to rent access to internet, paying a low tariff (on average, US$ 0.60 per hour). This phenomenon permits that 90% of population that do not have a computer access to the web. • Supreme Decree Nº 66-2001-PCM established the obligation of governmental institutions to create action plans for the development and establishment of an information society, the guarantee of free access to public information and the elaboration of institutional web pages.

  17. Those factors have generated a proper environment for the use internet as a basic tool for the development and delivery of information destined to agricultural producers.

  18. Governmental participation • Peruvian Ministry of Agriculture (MINAG), in this specific case, had the commitment to provide all the needed information to producers via internet. • In this specific case this makes possible the complete use of producers’ right to decide what is better for them: using the warrant mechanism or not. • Objective of developing the creation of information systems and sharing of knowledge: consolidation of knowledge organization spirals

  19. Knowledge organization spiral NETWORK OF RICE PRODUCERS (SHARE EXPERIENCES) ESTABLISHEMENT OF A SOURCE OF INFORMATION CONSOLIDATION AND DELIVERY OF INFORMATION WARRANT PROMOTION TO THE NEXT SPIRAL OF KNOWLEDGE AND INFORMATION

  20. The strategy • After producers proposal of warrant as an alternative, the promotion of this mechanism was a priority Flyers giving the information related to warrant procedure Radial spots, according to regional characteristics Development of information: web page

  21. Where to find the information?(www.minag.gob.pe)

  22. What information is delivered? This information is a group of daily statistics related to four main issues: • Local supply of rice and behaviour of prices in main local wholesale markets. • Variability of international prices during current year in main reference markets. • Accumulation of imports during current year. • Wholesale and farmer prices of rice, according to region of origin and quality of production.

  23. Some conclusions • In Peru, warrant as an alternative to rice producers has a reduced development because the mechanism has been recently promoted this year and producers do not rely on this mechanism at all. Despite the limited records of this financial instrument in agricultural sector, there are several opportunities for this mechanism. • To attend their requests, Peruvian Government –through Ministry of Agriculture- has decided to enforce the use of electronic networking systems and in this particular case the conjunction of complex situations has given incentives to exploit internet to fulfil this objective.

  24. THANK YOU

  25. http://www.yogyes.com/en/yogyakarta-tour-operator/bepe-tour/ • http://www.yogyes.com/

More Related