NEWS - Success Story e from Director


Sesame Opens Doors to Progress
Thousands of small farmers from San Pedro and Concepcion Departments chose to cultivate sesame to escape from extreme poverty.


Sesame

Companies and co-op organizations in San Pedro and Concepcion, two of the departments with greater rural poverty in Paraguay, were facing a particular difficult situation in 2003. They were receiving orders from Japan and Korea for sesame well above their supply capacity. this shortage represented real hurdles to purchase small quantities of sesame from small producers living in this area during the harvest season. Although cultivation and harvesting of sesame could be carried out by machine, the high demand was for seeds harvested by hand.

While exporting companies and small producers have had a positive relationship, it was possible to improve this relationships by promoting the quality of sesame that was in high demand as well as providing training assistance regarding the necessary care to the seeds during the harvest and by openly providing transparent information on sale prices.

During 2004 and 2005, USAID’s Paraguay Vende program signed an agreement with four companies and one co-op to promote the cultivation of sesame and assist in the search for alternative markets and higher value-added segments. The agreement with the Shirosawa Company was to increase the crop area. The agreement with One World Trade and the Nortena Cooperative was to assist in the introduction of organic sesame and the agreement with Chung Bo was for assistance in the collection of second quality-sesame to produce sesame coffee or oil. An agreement with Kemagro was for guidance on demand from US companies for a specific variety of sesame called 'Inia'. These actions constituted the largest effort by Paraguay Vende in the assistance offered to Paraguayan companies.

The sesame opened the door for change in San Pedro and Concepcion. The Paraguayan Chamber of Sesame estimated that the export of sesame in Paraguay rose by $ 20 million between 2004 and 2007. The increased export of the four companies linked to the overall assistance from Paraguay Vende was in the order of $ 8.4 million. More than 50% of this amount went straight to the pockets of small farmers. Thanks to sesame, thousands of poor rural homes gained access to a more dignified life.

Paraguay Vende assistance in Concepcion and San Pedro made way for many rural entrepreneurs to begin activities in agri-business and helped foster good relationships between companies and producers of sesame that continues today.