A Rare Success Story
Not too far from Palencia, in the city of Chimaltenango, is Aj Ticonel, an association of small farmers that has thrived because it has something Mr. Chinchilla's co-op lacked: a shrewd and enterprising businessman to run it. But even for a savvy company like Aj Ticonel, success came not from supplying choosy supermarket chains but rather from its ability to exploit a global market. Aj Ticonel sells three million pounds of mini-vegetables and snow peas for export to the United States, but only 80,000 pounds to supermarkets. Alberto Monterroso said he gave up on growing broccoli for La Fragua. He found the chain bought inconsistent amounts. "There are a lot of competitors here," he said, "a lot of small farmers trying to sell to them, so the prices are low."
The company's success has been built instead on sales of pricey vegetables for export. It now sells the same to La Fragua, and its membership has risen from 40 families in 1999 to 2,000 today. Its plant sparkles. Its 53 packers wear gloves, face masks and hairnets as they sort slender French beans on stainless steel tables. Each box produce is marked with a bar code traceable to the family that grew it. Aj Ticonel sold $2.5 million worth of vegetables last year, but Mr. Monterroso, a sociologist and deal maker with a passion for justice, paid himself only $18,000. Most of the company's profits are plowed back into the plant, marketing campaigns and agricultural education for the farmers. "I want a different country for my sons," Mr. Monterroso said. "I'm trying to redistribute the wealth so people will live in harmony."
One recent afternoon, a big Aj Ticonel truck took a meandering path into the hilly countryside, stopping for peasants waiting roadside with crates of vegetables to load. Many of them grumbled that Aj Ticonel does not pay enough and rejects too many of their vegetables, but most had been selling to the company for years. The evidence of their profit could be seen in new roofs, freshly painted homes and well-clothed children. Still, Mr. Monterroso acknowledged how hard it will be to replicate Aj Ticonel. Three times, the company loaned money to farmers to clone itself. Three times the farmers went out of business. For Latin America's millions of small farmers, he offered this sobering fact of life: "The client buys from us not because poor people produce it, but because it's a good product."
A Rare Success Story
Not too far from Palencia, in the city of Chimaltenango, is Aj Ticonel, an association of small farmers that has thrived because it has something Mr. Chinchilla's co-op lacked: a shrewd and enterprising businessman to run it. But even for a savvy company like Aj Ticonel, success came not from supplying choosy supermarket chains but rather from its ability to exploit a global market. Aj Ticonel sells three million pounds of mini-vegetables and snow peas for export to the United States, but only 80,000 pounds to supermarkets. Alberto Monterroso said he gave up on growing broccoli for La Fragua. He found the chain bought inconsistent amounts. "There are a lot of competitors here," he said, "a lot of small farmers trying to sell to them, so the prices are low."
The company's success has been built instead on sales of pricey vegetables for export. It now sells the same to La Fragua, and its membership has risen from 40 families in 1999 to 2,000 today. Its plant sparkles. Its 53 packers wear gloves, face masks and hairnets as they sort slender French beans on stainless steel tables. Each box produce is marked with a bar code traceable to the family that grew it. Aj Ticonel sold $2.5 million worth of vegetables last year, but Mr. Monterroso, a sociologist and deal maker with a passion for justice, paid himself only $18,000. Most of the company's profits are plowed back into the plant, marketing campaigns and agricultural education for the farmers. "I want a different country for my sons," Mr. Monterroso said. "I'm trying to redistribute the wealth so people will live in harmony."
One recent afternoon, a big Aj Ticonel truck took a meandering path into the hilly countryside, stopping for peasants waiting roadside with crates of vegetables to load. Many of them grumbled that Aj Ticonel does not pay enough and rejects too many of their vegetables, but most had been selling to the company for years. The evidence of their profit could be seen in new roofs, freshly painted homes and well-clothed children. Still, Mr. Monterroso acknowledged how hard it will be to replicate Aj Ticonel. Three times, the company loaned money to farmers to clone itself. Three times the farmers went out of business. For Latin America's millions of small farmers, he offered this sobering fact of life: "The client buys from us not because poor people produce it, but because it's a good product."
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