In this section the main patterns, challenges and trends of the agro-ecological network, the organic market network and the ecological farming network are described. The analysis of the main patterns found in the networks focuses on cooperation, power relations and roles of NGOs.
Cooperation
Cooperation of actors in the networks of organic production has the following four characteristics: (1) cooperation implies strong exchange of resources and clear division of tasks; (2) cooperation is flexible; (3) cooperation enhances the expansion of networks; and (4) cooperation is not a direct consequence of the existence of ties.
Regarding the first characteristic, actors exchange resources continuously, either within the networks or with other networks. The exchange of resources is done with particular networks or
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single actors that fulfill better mutual interests, the so called ‘key’ partners. In the networks RAE Peru, Grupo Ecologica Peru and ANPE have closer cooperation, among each other, with other NGOs and within platforms (Appendix 2a,b,d). However, cooperation has particularities in the networks of organic production. One particularity is that at local level cooperation rests strongly on non-formal mechanisms while at global level it rests on formal mechanisms (Alvarado, 2008, interview; Trejo, 2008, interview; Wu, 2008, interview). Moreover, cooperation implies task division of actors in the networks. Actors contribute with particular resources in terms of knowledge, information and capital (Alvarado, 2008, interview; Pardo, 2008, interview). For instance, the NGOs Centro IDEAS focuses on trainings and research, IDMA, Huayuna and CEAR focus on ecological farming, RAE Peru focuses on capacity building, local market research and logistical support of producers, RAAA focuses on lobby and advocacy, and Grupo Ecologica Peru and ANPE focus on market access and development respectively (Alvarado, 2008, interview). The networks, the main local actors, platforms and promoters are summarized in Table 5.4.
Regarding the second characteristic, flexibility of cooperation means that actors establish platforms and other operational structures on temporary or continuous bases, depending of the needs in the networks at sub-national, national, regional and global level. NGOs group in task Table 5.4. Networks promoting organic production for SMEs in Peru (see list of abbreviations for explanation).
Networks/national actors Platforms Global actors Local National Regional Global
Agroecological RAE Peru and its
affiliated NGOs
Bioferia Surco Bioferia Lima Norte Bioferia Cieneguilla
Peruvian Agro- ecological Consortium Peru, Country Free
of Transgenics
MAELA GALCI
IFOAM ICCO
Organic market
Grupo Ecologica Peru and its affiliated NGOs and small scale enterprises
Bioferia Miraflores Bioferia San Isidro Bioferia Lima Norte
Peru, Country Free of Transgenics MAELA GALCI IFOAM CORDIAD OXFAM- NOVIB Ecological farming
ANPE and its affiliated small scale producers
13 Bioferias throughout Peru ARPEP Peruvian Agro- ecological Consortium Peru, Country Free
of Transgenics
MAELA IFOAM HIVOS ADG OXFAM-
INTERMON INOFO Slow Food
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forces, steering committees or working groups for short periods of time or they come together for setting up a long-term new organization. Moreover, NGOs can join or split up to establish a new platform, or join to an already functioning platform.
Regarding the third characteristic, members of the networks of organic production have strong ties, especially among key members. RAE Peru, Grupo Ecologica Peru and ANPE present strong ties, especially RAE Peru. RAE Peru is a more established actor than the other two NGOs in terms of its longer existence, being founded in 1987 while key affiliated NGOs were founded at the end of the 1970s and beginning of the 1980s (Alvarado, 2008; interview; Wu, 2008, interview). Ties are not limited to the networks of organic production. New ties are formed with fair trade, agrarian and business networks, international cooperation agencies, consumers and governmental agencies (Pardo, 2008, interview; Trejo, 2009, interview). Actually, Grupo Ecologica Peru and ANPE are expanding their ties. Especially, Grupo Ecologica Peru is establishing ties with market actors (Pardo, 2008, interview). Furthermore, the struggling against transgenic food is triggering the formation of ties with new actors joining the organic networks, including, exporters, chefs and vegetarians. This expansion of ties sets the condition for furthering cooperation among actors. As a result, cooperation has become more intense in the networks of organic production. This capacity of cooperation of local NGOs in Peru in terms of mobilization of stakeholders and political advocacy is also highlighted by Zelada (2008) in a study of 16 local NGOs counterparts of CORDIAD. An overview of the networks of organic production; including key actors, platforms and connections, is presented in Figure 5.1.
Regarding the fourth characteristic, the presence of ties among actors is not enough to initiate cooperation. This means that although there are connections among actors, cooperation might be scarce or absent. RAE Peru, Grupo Ecologica Peru and ANPE have showed scarce cooperation with other organizations and platforms working on rural SME development, specially before 2008, although they had strong ties (Alvarado, 2008, interview; Pardo, 2008, interview; Trejo, 2008, interview). Furthermore, the scarce cooperation happened also between agro-ecological NGOs and nature conservation NGOs. However, during the last decade the increasing interaction between food production and nature protection is encouraging the cross fertilization of both types of NGOs, especially in the mitigation strategies for climate change.
Power relations
Power relations between actors in the networks of organic production have the following three characteristics: (1) power is expressed in terms of control of resources; (2) key actors are involved in disputes and conflicts for conserving or gaining power positions; and (3) power positions of actors are continuously challenged and change in time.
The control of resources in the networks is operationalised by rules and centralized coordination. Asymmetry in controlling resources is stronger at the local branches of the networks. ANPE has more centralized control of its affiliated organizations than RAE Peru (Alvarado, 2008, interview). For instance, ANPE’s coordination board emphasizes direct supervision of their affiliated producers and monitors the work of other actors in the networks. ANPE acts as a watch dog organization, monitoring the way funding should be allocated by other actors, especially by RAE Peru (Alvarado,
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2008, interview). At international level, ICCO, HIVOS and OXFAM/NOVIB mainly have the capacity to control the provisioning of funding and expertise to the network.
Regarding the second power characteristic, power struggle has been intensified because of the more central position of producers either forming their own organizations or gaining power in organizations they joined with NGOs. Conflicts and disputes between NGOs and producers have emerged in the networks as a result of the control of resources. Indeed, networks of organic production are far from a harmonious space. Conflicts are usually between NGOs and producers affiliated to Grupo Ecologica Peru, and between RAE Peru and ANPE. The conflicts are mainly between their national coordination boards. Also, conflicts between producers commercializing at the Bioferia Miraflores and Grupo Ecologica Peru (Pardo, 2008, interview). One of the factors found is this study and pointed out by other studies (e.g. Zelada, 2008) is the paternalistic approaches of conventional NGOs to small scale producers, not realizing that small scale producers are the one that run businesses and know better how markets operate. Conflicts between NGOs and producers have to do with the emancipation of producers from NGOs and the need to ensure powerful positions in the network.
As a result of those disputes there are now changes in the position of actors in the networks, the third characteristic. Power relations between producers and NGOs now differ from those in the 1990s (Pardo, 2008, interview; Trejo, 2008, interview). For instance, the setting up of ANPE by producers and the balance in power between producers and NGOs in Grupo Ecologica Peru show that producers are capable to lead their organizations. At the beginning of the Bioferia Miraflores Figure 5.1. Map of the networks of organic production; including key actors, platforms and connections.
88 NGOs and the sustainability of SMEs in Peru
NGOs and producers representatives agreed that NGOs should lead Grupo Ecologica Peru while producers gain experience. However, NGOs did not leave the board of Grupo Ecologica Peru, losing legitimacy in the eyes of producers. As a consequence, in the year 2004 another turning point happened with the change of the Bioferia Miraflores. Producers of the Bioferia Miraflores raised concern about the fact that Grupo Ecologica Peru is only in the hands of NGOs. Most producers started to see Grupo Ecologica Peru as another organization and did not feel part of Grupo Ecologica Peru anymore. Producers organized themselves to be part of the board of Grupo Ecologica Peru. The same year, for the first time in the history of an NGO in Peru, producers took the lead of Grupo Ecologica Peru (Pardo, 2008, interview). Now, RAE Peru, Grupo Ecologica Peru and ANPE have more horizontal participation at the national level platforms. Another proof of better positions of producers is the emergence of organic food enterprises such as ‘La Cabrita’, ‘Bioandean’ and ‘Vaquitas Felices’. They are gaining a position in market as the organic market growth. This more central position of producers does not mean the end of NGOs. The sensitivity of local NGOs to the reality of small scale producers makes them necessary in the chain of cooperation from international cooperation agencies towards small scale producers. The capacity of local NGOs and producers to mobilize resources, networking and establish cooperation – despites their disputes – make local actors holders of bargaining power. Particularly, the participation of small scale producers in NGOs and platforms make the networks of organic production socially strong.
Roles of NGOs
NGOs in the networks of organic production perform the following main roles: (1) they support the development of organic markets; (2) they support small scale producers and enterprises to access competitive markets and; (3) they support enterprise development.
Actors in the networks of organic production converge in supporting the Bioferias in Peru. NGOs have tremendously contributed in developing the local organic market, providing funding for the Bioferias, organizing trainings on organic farming techniques and on certification schemes, coordinating with municipalities, and influencing policy makers for institutionalising the Bioferias.
With respect to small scale producer support, the roles of NGOs change. New roles are market facilitation and market mediation of producers and enterprises with market actors. The target is supermarkets, restaurants, hotels and caterings at the national level, and big stores and supermarket chains at the international market. As conventional NGOs have limitations to answer the new needs of small scale producers in the market, this gap has contributed to the rise of a new type of NGOs. Examples of such new types of NGOs are Grupo Ecologica Peru and ANPE. It is important to point out that a more central position of small scale producers and enterprises in the market does not mean a diminishing role of NGOs. NGOs are getting further expertise in combining the development of and access to organic markets. For instance, the NGO El Taller is setting up a new Bioferia in Arequipa, a big city in the south of Peru, and supporting small scale producers of organic medicinal plants to access international markets (Alvarado, 2008, interview; Luque, 2007, interview).
Thirdly, NGOs are adjusting their traditional roles towards the new context of the liberal market. NGOs are providing capacity building to small scale enterprises in business skills, market information for producers, consumer demands, business management and certification schemes.
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Challenges
Networks of organic production are facing three main challenges: (1) organizational sustainability; (2) trust between actors; and (3) meeting organic market demands.
The first challenge has to do with the concern of NGOs for their sustainability. NGOs understand sustainability challenges at three levels: individual, the platforms and the entire network. One of the main concerns highlighted by NGOs is funding. NGOs financially depend strongly on international cooperation agencies to operate projects with producers. Nevertheless, dependency of aid funding is not the same for all NGOs. Centro IDEAS and IDMA have higher dependency from international cooperation agencies than ANPE and Grupo Ecologica Peru. As the last two NGOs are involved in commercialization of organic products, they depend also on the market. The availability of funding for conventional NGOs is getting scarce. In the case of the new type of NGOs, including producer NGOs and market NGOs, there is more funding available for their projects. However, they are not enough prepared to take that opportunity. Similarly, the Bioferias are facing challenges regarding financial sustainability. Before 2001, the Bioferia Miraflores was a subsidized initiative by RAE Peru. Now under the market demand approach, producers have to take into account the commercialization costs at the Bioferia, for instance, paying administrative costs, taxes and logistic costs. Producers claim to be more independent from NGOs but at the same time want to remain subsidized by NGOs. The Bioferias also show limitations for business growth of producers. The quantity of supply is low and there is no room for the upgrading enterprises. For instance, the Bioferia Miraflores is overcoming its capacities in terms of size, space and consumers affluence. According to Pardo (2008, interview), at least 200 Bioferias are needed in Peru to put a respectful quantity of organic production on the market.
The second challenge consist of overcoming the mistrust especially between NGOs and the national government, and between producer NGOs, market NGOs and conventional NGOs. Key actors of the networks of organic production and of the national government lack strong ties. Although some ties have been identified with SENASA and the Ministry of Agriculture, no lasting cooperation has been identified.
The third challenge has to do with the demand for knowledge on market-oriented organic farming and on strategies of commercialization. Organizing production according to market demands means understanding how the market works and how to commercialize products. The possibility that small scale organic producers supply products to local and international markets is an opportunity, but most small scale producers are not prepared to be suppliers in terms of quantity, quality and continuity. Most small scale organic producers have limitations in terms of business competences. Similarly, agro-ecological NGOs need to develop capabilities for market facilitation and market intermediation. Finally, three basic requirements have been raised in the networks to meet market demands: increase the number of organic producers, the scale up of production and the adoption of sustainable production technologies. What has been found is that the promotion of sustainable technologies is not a priority, neither for agro-ecological NGOs nor for the national government. Furthermore, national agrarian policies do not establish enabling conditions and do not ensure enough business capacity for the growth of the organic market in the country. The local organic market can be enlarged by using PGS but there is lack of governmental support to do so. The entering of large agro-industries into the local market will also impact the production
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of small scale organic producers. By having capital and getting support from government, large agro-industries can overtake small scale producers in the organic market.
Trends
The networks of organic production show the following main tendencies: (1) change in values, (2) further density of connections and (3) further formalization of local actors.
Values are changing in the networks, from solidarity to business, due to a more central position of the neoliberal market. Actors and platforms are being organized in function of market demands. This process is clearly observed in the Bioferia Miraflores. At the beginning the Bioferia Miraflores did not focus on profit making. Before the 1990s, motivation of NGOs and producers was driven by solidarity values. For instance, there was close cooperation between Grupo Ecologica Peru and the Centro IDEAS. The consequences of the change in values were the formalization of Grupo Ecologica Peru and the Bioferia Miraflores in 2001. NGOs and organic producers are centralizing the Bioferias into a national platform. In this way, it is expected that producers supply products to several Bioferias. Additionally, actors in the networks are increasingly using management, monitoring and evaluation tools to measure the performance of their projects. Professionalization is becoming a common practice, for producers by bringing their products in a competitive market and for local NGOs by becoming attached to the chain of international cooperation agencies. Networks of organic production will likely become more structured at regional, national and sub-national level, with stronger ties and highly structured platforms.
5.2.6 Conclusions
a. The agro-ecological network, the organic market network and the ecological farming network are the main networks involved in the promotion of organic production by small scale producers and small scale enterprises in Peru. The three networks are mainly constituted by agro-ecological NGOs, small scale organic producers and international cooperation agencies. Each network engages a particular set of actors from local to global level. Agro-ecological NGOs are the main actors in the networks. Key agro-ecological NGOs in Peru are RAE Peru, Grupo Ecologica Peru and ANPE. They are not single organizations but a ‘cluster’ of local organizations, including their affiliated organizations operating throughout Peru and their national coordination boards located in Lima, the capital of Peru. RAE Peru represents most agro-ecological NGOs in Peru. Grupo Ecologica Peru represents agro-ecological NGOs and small scale organic producers. ANPE represents only organic producers, not NGOs. Different from Grupo Ecologica Peru and RAE Peru, ANPE is organized in sub-national platforms of producers, being the Association of Organic Producers of Piura (ARPEP) and the Organic Producer Association of Ayacucho (ARPOA) the emblematic examples.
b. Agro-ecological NGOs are organized in platforms established at local, national, regional and global level. The platforms are hubs for the coordination of actors. The first layer is the local platform of the organic farmers’ market called Bioferias. Bioferias are widely spread throughout the country. The second layer is the national platforms, the best known being the Platform ‘Peru, Country Free of Transgenics’ and the Agro-ecological Consortium. The third layer is
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the regional platforms. Examples are MAELA and GALCI. The fourth layer is the platform of global reach such as IFOAM. Exchange of resources and cooperation between actors in terms of funding and expertise are strong in the platforms. Platforms can be established for long-term or short-term. For instance, while the Peruvian Agro-ecological Consortium has been launched, the National Commission of Organic Products (CONAPO) has been dissolved. Platforms are the nodes where agro-ecological NGOs build ties with non-agro-ecological NGOs, governmental actors, agrarian associations and business actors. Actors expand or reduce their ties according to their needs, although ties are very strong in the networks. This means that cooperation is intense in the networks but flexible. As the rise of the neoliberal market has brought new needs for actors in the networks of organic production, the networks are expanding their boundaries, creating new connections with new actors.
c. NGOs and producers are involved in disputes and conflicts for power positions in the networks. Different motivations, interests and limited access of funding mainly condition the emergence of conflicts. Most conflicts are related to the power position of producers in the platforms