Category Archives: Diversification

Booklet 5: RSEs as catalysts of good changes

Booklet 5

RSEs[1] as catalysts of good changes

René Mendoza Vidaurre with Fabiola Zeledón and Esmelda Suazo

The drunkard´s curse

-Why are you selling your land?

-I have debts, I have no money…I no longer know what to do.

-Ahh, you have the drunkard´s curse.

-what?

-The drunk sells what he has and keeps the craving for alcohol, returns to look for what he can sell or steal, and it increases his urge to drink.

-I am not a drunk! What does this drunkard´s curse have to do with me?

There have been hundreds of innovations that, on the death of the “boss”, have fallen apart like a house of cards. In good measure due to the “drunkard´s curse”. The drunk who wakes up with a hangover, looks to see if he can find even a little bit of alcohol, and there is nothing that can stop him from getting that drink, he will get it by begging, selling what is within his reach or stealing it.

In terms of this article, those “cravings” are the social rules of families that push or pull people to get rid of any initiative with potential for success, on the condition of getting “a drink” (short term earnings). These families, nevertheless, are unaware of these social rules, those “cravings” as in the story: “I am not a drunk! What does this drunkard´s curse have to do with me?” It is like, literally, the initiative “got drunk”, whose owners end up selling “the cow that provides the milk” instead of selling “the milk”; or better still, instead of making cheese, cream and cream cheese with “the milk.”

RSEs analyze these realities. They are not isolated from them. They study them, they study themselves, correct and catalyze transformational actions. In fact, SREs emerged while analyzing these realities, looking at how to chart a different path and at the same time contribute to the community. How do the SREs catalyze good changes in communities? In this booklet we try to respond to this question, while we invite those who read it to reflect on their own responses. Here we describe some of those harmful social rules, we identify other rules with which initiatives can pave the way, we denote the role of these types of initiatives for generating good changes in communities, and we conclude that this path deserves being tested.

1.    The strength of social rules

While studying the commercialization of products, the way that families decide on inheritances, production systems, how women become single mothers, how sharecropping relationship work, being a day worker, or how cooperatives work, time and time again structural conditions appear that leave people or organizations like hobbled hens in terms of their growth, obstacles appear to trip the feet of those who are walking. What is this common pattern? Figure 1 shows three rules, individual opportunism, men as the law, and the big payoff culture; it is a triangle that like the “cravings” in the drunkard´s curse makes people end up selling “the cow.”

If a couple puts up a storefront, sew shop or makes rosquillas [corn cookies] to sell, their own relatives and friends trip them up. How? They buy on credit, buy on credit, and continue to buy on credit. It is the drunkard´s curse, they promise to pay, they pay and buy on credit again, and on and on. When the amount that they put on their tab surpasses their financial capacities, they get upset when they are asked to pay, and they are resentful if they are not given more credit on top of what they already owe, it is like they earned the right to buy on credit, or that they end up believing that the store belongs to them- this is what we call the opportunism of drunks. The consequence of these practices is that the initiative, on having more than 15% of their capital in the “on the tab” portfolio, begins to fall apart, and families get stressed on being charged and promising payments, and it is like a wound exposed to the sun, gets swollen and is difficult to heal. The rules that lead to failure are: being a relative gives me the right to buy on credit, not necessarily to pay – it is like “what is yours is mine, and what is mine is mine”; no one from the community, individually, should stand out (be successful). Both rules come from the indigenous-peasant family that emerged in a context of bartering (in kind exchanges) and on communal lands, if you do a favor, the other family at some time will return the favor; now, nevertheless, the context is practically the opposite, in addition to the fact that the element of time in a store is a matter of days, and the fact that a basis of common food does not exist.

There are families that, just as they grow quickly, also fall apart quickly. It could be that they buy and accumulate land, or as lenders, accumulate money. The drunkard´s curse is that, even though they try to improve their work, for example, intensifying the use of the soil, they go back to buying more land, and become extensive again in their use of the soil; in this way they have coffee farms where they get 8 loads per manzana, or grazing land where they have 1 cow on 2 manzanas[2]. Then their children trip them up: Dad divides up the land, one part he sells and the other part he divides up into an inheritance for his children. Once the land is received, most of the children begin to sell their part, or borrow money putting it up as collateral, prisoners of the drunkard´s curse. The rule that pulls them toward failure is: only the man (Father/husband) makes decisions and he is the law for the family. With this rule, the man wants to administer and make decisions about any initiative, decisions are made under the culture of “leave it to me”- “I will work it out, this is a man´s issue.”  This rule comes from patriarchy, it is a rule that prevents his daughters and sons from learning, which disempowers women (Mothers/wives) and it is a rule that ruins communities.

Raising coffee or sugar cane as a monocrop has meant that families receive payment only once with the harvest, on which income depends the food and clothing of the family. We call this custom the big payoff culture: wanting to receive payment in one bit hit, not getting smaller amounts throughout the year, nor cultivating food for each month. Correspondingly, when a family administers a new initiative, this initiative tends to naturally be trapped by this big payoff culture; they want to have earnings in a few days and in larger amounts, if they are not able to get that, they shout to the four winds for more product, their frustration traps them. They lose sight of the need to learn to administer the RSEs, build up clientele, study their environment, plan; what is important to them is to “win the lottery”; the big payoff, because they believe that there is nothing to learn, or that they already know it. The rule that pulls them to failure is: earn money right now however possible, that tomorrow may be too late. It is a rule that comes from capitalism – like usury or heartless commercial mediation – and that rule is like the sun during the daytime, it keeps you from seeing the stars.

2.    Collective actions that make a difference

A RSE can reduce – and avoid – the risk of following the fate of that ton of initiatives and organizations that tend to fall apart. For that purpose, we introduce a RSE as a new seed that grows between the land of the community and the winds that blow from outside the community. This RSE needs the virtuous triangle of figure 2. It is from this virtuous triangle that RSEs can catalyze small but good changes in the community. We use the word “catalyze” to indicate that SREs can cause unexpected changes, without generating or expanding them directly, allowing people in the community to observe, digest, reflect on their realities in the face of this mirror of the SRE, and be correcting, expanding and generating new practices and rules.

The first element is distinguishing collective assets from individual assets. For that purpose let us read about Blanca Victoria from El Cua, as told by her son, Juan Adams:

Rogelio worked for his aunt, Blanca Victoria. On pay day he would say, “Aunt, don´t pay me now, just give me this much.” His aunt saved his money. One day Blanca Victoria needed some money to buy something, and she went running to her nephew, “Rogelio, lend me some money.” “Sure, aunt, just use it,” responded Rogelio. The aunt returned home and took the money from Rogelio´s savings which she kept for him.

The family that administers a RSE is like Aunt Blanca Victoria, and the resources in the store, roaster or bakery are like the resources of Rogelio, and the two dozen shareholders who own the RSE are like Rogelio. The family has those resources in their hands, as the Aunt did, but they are the resources of others; even though they are in their hands, they cannot use them as if they were theirs. They are a collective asset.

Within this framework, a RSE can navigate better. If a relative or a family friend of the person who administers a RSE comes looking to start a tab, they cannot demand that they be given credit under the rule that “we are part of the family”, because the products or the roaster do not belong to the family, they belong to two dozen shareholders; the administrator will be able to say, “If it were mine I would start a tab for you, but this is not mine.” Not even the administrator herself can start her own tab, she cannot take products and “just write it down”, she has to buy them like any other customer.

The second element is that each RSE must be guided by written rules and the numbers. The rules will emerge based on studying and testing policies, which are later approved by all the shareholders. In the RSEs we tested them, and now we have written rules that we all recognize and must follow, which are in booklet 2. They are rules that can be changed in assemblies.

In terms of the numbers, each administrator records data in a timely and trustworthy manner. The payment of the administrator depends on the quality of this record. The improvement of a RSE depends on the quality of this data, analyzing the data and making improvements based on that analysis. For example, for the case of providing products on credit, the numbers and the rules are very indicative of good practice:

  • Products on credit in a story cannot surpass 5% of the working capital of the store. So, the administrator must register and add up each day the data recorded to apply this rule.
  • The amount on credit cannot surpass 50% of the monthly income of the person who gets credit. So, before putting it on the tab of the person, that person needs to be studied.
  • Only products that are shared in the family can be sold on credit. For example, cigarettes are not shared in the family, so do not make up part of the products that can be taken on credit.
  • Products considered “for pleasure” (e.g. chicken, soda pop…) cannot be given on credit. Only basic need products (oil, salt, sugar, rice, beans).

The third element is the culture of small and staggered payoffs. Grain by grain the hen fills her stomach, our grandmothers used to say. Each RSE is designed for families to generate and save income every day of the year. Each day that they sell or provide roasting services generates income; each day they record data and analyze that data; each day they communicate with customers and take the pulse of the community. A RSE is a university in the home and the community.

3.    How  RSEs catalyze change in the community

If an RSE operates based on the virtuous triangle, in itself it becomes an oil lamp in the community. It catalyzes change. How? The distinction between collective assets and individual assets will have an impact in the community. People will understand that the land is not an individual asset either, only belonging to the man (husband/father), it also belongs to the mother and the children; in other words, it is a family asset; this will help the family to democratize, be more equitable and the land be better used. The same thing will happen in cooperatives, churches…In this framework Dad and Mom will have a guide for raising their children in a different, better way.

Following rules approved by an assembly is, paradoxically, a new practice. This will have an impact in the community, more and more they will question rules that only the patron sets, only the man who believes he is the law, or rules that come from outside. The source of the rules will slowly be left exposed.

The culture of the small payoff will help people to remember the old practices, of first ensuring the food of the family for the year. Of maybe diversifying production. Processing food and saving it. Generating work in so many things that have to be done every day. Saving for lean times. Having patience.

 

In this way a RSE, in addition to energizing the economy of a community, buying products from one and selling products to others, becomes a lamp. It helps the community to move from moment 1 to moment 2. The figure of the pyramid captures this realistic aspiration, the community does not cease to be vertical, but it is more inclusive, it becomes wider.

4.    Conclusions

We have conceived of a RSE different from conventional businesses like storefronts, cheesemakers, farms, honey producers…that would be managed by families or associative organizations. Now we understand how RSEs, and any associative organization if it proposes and works as we have shown in these booklets, can avoid reproducing the drunkard´s curse, the big payoff, or “leave it to me” culture.

The role of RSEs seems to be getting clearer day by day, as when fog dissipates and allows us to see farms, houses and roads up ahead. A RSE is not just to get income, not limited just to finances or just for making money; nor is it to reproduce the culture of the big payoff nor the drunkard´s curse. RSEs can have a transformational role in rural societies, becoming an antidote to the drunkard´s curse and despotism, to the extent that it draw a distinction with collective assets, develops a written and number culture, and daily works on what is tangible (service of store and roasting), and what is intangible (social relations with customers, new knowledge for innovating).

Each person should work for RSEs to be a means that help us revive our communities, make it possible for a person to discover their drunkard´s curse (“I am not a drunk!”), and get back on track, and together we get the entire community back on track.

[1] Rural Social  Enterprises

[2] =3.4 acres

The time for communities

The time for communities

René Mendoza Vidaurre, Fabiola Zeledón and Esmelda Suazo[1]

Along the trails

-Cousin, you have traveled so much that I am sure that you earn and know a lot, help us to travel in that way as a cooperative.

-I have traveled along the highway, it is fast, and you only see money rolling on wheels.

                                                                                                                                     -That´s right…. We want to make money.

-When I get out of the car and walk on foot or on horseback, I see people, groups together, I hear that song of the cicadas.

-What do you mean to say?

-If the cooperative takes to the trails, it will touch hearts, dig into our roots, make people think and walk together.

-In other words, feel, walk and begin to cooperate, instead of taking the highway.

-That´s right, Ana, it is the first step…along the trails!

The hurry to make money makes us run and keeps us from seeing what is at our sides. When we reach the goal, we are like the dog in the countryside, who at the first sound of some car, takes off barking at full speed, and then when it reaches the car, nothing happens, it returns in silence. Organizations, aid agencies and institutions are desperately providing their resources and trainings under the discourse of stamping out hunger or poverty, and when they achieve these investment goals, they return in silence. The impoverished population are like the car that the dog reaches, increases its speed of adding more people. With COVID-19 that velocity is increasing dramatically. How can one get out of extreme poverty? The parable tells us that in order to begin to cooperate, let us take to the trails and delve into our origins. What does this mean? It is the time for communities!

1.     The reality is in full view

The march of COVID-19 lifts the covers, and realities appear that are difficult for us to recognize. The rural population migrates to the forests or outside the country under the pressure of mono-cropping agriculture or ranching, pushed in turn by the financial and commercial industries. This is not new, with or without cover, we have known it for decades and centuries.

With COVID-19 we were hoping that the internal assets of communities, which have been supported by hundreds of international aid projects, might be guiding preventive actions. That the churches, with so many centuries of preaching the Good Samaritan, might mobilize. That first- tier cooperatives, members of second tier organizations, might move in the face of the virus. Strangely they are still. “We are waiting for directions from above”, “without projects, there is no organization”, “donors are not sending aid to those who organized in cooperatives”, “everything is in the town (municipal capital), the meetings, the harvest collection”. What is left of the “anchor”, “articulations”, “networks”, “public-private alliances” and “empowerment”? The gaze of elderly women seem to tell us: “nothing”. Maybe that is what is new, in the sense that we are surprised.

It would seem that the projects, sermons, credit and commercial policies instead eroded communities. They pushed ideas about being individual, taking on mono-cropping agriculture and relying on aid; some argue that by supporting an individual they are supporting rural families, but a family as an institution is hierarchical and patriarchal, in addition to the fact that the notion of “nuclear family” is nearly non-existent in the rural world, where it is common to see a son or daughter grow up with their grandparents, aunt or uncle, and/or mother.   With COVID-19 that erosion is intensified, the quarantine and confinement accentuate the neoliberal idea of “save yourselves those who have”. Because a daily wage earner in farming or construction and most of the population who work in the so-called “informal economy” cannot stay home for more than a week, they begin to go into debt, buy on credit, make storefronts go broke, and affect their daily food intake, and this in the long term will mean loss of human life.

2.     Knowing how to get to communities

The idea of harmonic communities of Robert Redfield (1931, A Mexican Village: Tepoztlan), has been left far behind. Since the studies of Oscar Lewis (1951, Life in a Mexican Village: Tepoztlan Restudied) we understand communities as heterogeneous spaces with diversity, and even opposing interests. They are communities with which people identify, it is their utopia and mission – as Thomas More would say (1516, Utopia: The Happy Republic): They are not a “sack of potatoes”, as Marx suggested, nor “pockets of peasants” as certain agrarian literature categorized them for years from 1980 to 1990. They are disputed spaces where external policies and resources should know how to get there, facilitating the first lesson of humanity: cooperation. People who organize can bring their produce together and get better prices, free themselves from usury at the point of group savings, protect water sources in the high areas, and along the length of the creek, and coordinate to prevent natural and social viruses. Individually, they cannot change prices, free themselves from usury, protect water nor prevent viruses.

Let us illustrate how these community assets move from the few interesting experiences that exist in Central America. Rodrigo Pérez, a delegate of the Word from the community of San Antonio, said, “this community store saves me a day, and the bus fare of going to the town to buy what I now buy here.” If the crowding in town favors COVID-19, people like Rodrigo find what they are looking for in the community store. “It is the first cooperative that came to coordinate work with us,” they said in the school in Samarkanda, appreciating the support of the Reynerio Tijerino cooperative so that students and teachers might protect themselves from the virus. “Only our cooperative collects the harvest in the community, and right here does the payments and assemblies,” said Selenia Cornejo. “Buyers and financiers come to visit us in the community,” said Daniel Meneses, from the October 13th Cooperative. We find similar words about community coffee roasters, bread makers, groups of beekeepers…”The coffee that we produce and roast, we sell ourselves along with our relatives outside, isn´t that a network?” Each organization has a mural with information to prevent COVID-19, while at the same time together are weaving a support network for people who end up affected by the virus.

What is common for all of them? They are in the community itself. Their focus is on their origins. They function with their own resources and rules polished in their assemblies. They improve their oral tradition with writing. They represent a diversity of ages, where youth under the age of 40 are leading them. They distribute their profits. They organize and are transparent with their information. They compete for and rotate their leadership. They organize their solidarity. They fight against their old “demons”, the rules of elites that have nested in their minds: “in group, but for me”, opportunistic actions when internal and external control is weak, prejudice against women legitimized by the churches, prejudices against workers without land (“the cooperative is for those who have land”), and providentialism (“God has a plan to protect us”, “the big chief has a plan to take care of his people”). This type of grassroots organization no longer waits for direction from outside, they visit one another, discuss and, in the midst of their internal tensions and mutual distrust, resort to their social fund, while they look for external contacts that can reinforce their collective actions.

How are these community assets formed? Following a universal lesson: studying realities to innovate as a group and train ourselves. Combining efforts of people from the communities and from outside to organize social enterprises in the communities. Recording data, analyzing it and making decisions. Delving into histories to find values and rules with which to cooperate and recreate identities, because “the origins are in front of us, not behind”, as the Mapuche taught us, the indigenous people in Chile and Argentina. Bringing to light their old “demons” and ours as well as accompaniers (“providing information confuses people”, “donating food is the solution to hunger”, “we know your future because that future was our past”). Walking along the trails discerning what the processes themselves show us about how to accompany them.

3.     New veins that the effect of COVID-19 forces us to think about

COVID-19 raises the covers, and what appears are not just those realities that it is difficult for us to recognize, but also new veins to be worked on related to the social fund, the connection between organizations, the coherency between words and actions, and the decentralization of decisions.

Grassroots organizations, like those that we have described previously, have the practice of equitable distribution of what they have saved in a social fund. In the current context of COVID-19, that social fund gains importance, like the use of offerings and tithings on the part of churches. If the State provides curative health care, preventive health is an area where grassroots organizations and churches can invest resources and energies. This includes how to improve nutrition, prevent obesity and diabetes, invest in natural medicine and clean water, improve hand washing and introduce the use of masks in crowded spaces. How can this social fund be organized into areas of prevention?

If a person discovers the importance of combining efforts of several people, in the same way also organizations (collective groups) discover that coordinating among organizations to face COVID-19 is fundamental. Making connections among churches, schools, rural community Banks, community councils, businesses and the municipal government expresses the spirit of superimposed communities that exist in every territory. It is like the baby chick that breaks the eggshell, moves out of its comfort zone and connects with other organizations, it is something that we are not accustomed to do, but we need to do. For example, connecting with the church is not to sit down to discuss one or another form of religious faith, it is to rethink together the solidarity of the Good Samaritan, who did not rely on God sending his angels to save the wounded man, but simply acted, while other were in a hurry (“passed by on the other side”). Being connected is having the freedom to express these community cultures of each organization of which one is a member or participant. On their part, each organization should understand itself as a community, where their members or their staff identify with that organization, not so much for “what one gets”, but for “what one gives” the organization, where titles are opportunities to serve. How can churches, farms, community stores, schools, cooperatives and health centers be connected?

Governments, aid organizations, international enterprises should be coherent. Importing the best coffee, and leaving the worst for the producer families, feels bitter. Demanding meat that deforests, and at the same time being ecological, is disgusting. Supporting small scale production with credit for agrochemicals like glyphosate, that is damaging to natural and human health and increases rural unemployment, is repugnant. Donating certified seed to get rid of native seed and making them dependent on companies that sell that certified seed is shameful. Extracting minerals through strip mining and defending nature, seems like that Nazi who during the day sent children to the gas chambers and at night played with his children at home. How can coherency be obtained and also benefit rural communities? How can each organization and institution conceive itself and organize itself as a community?

Decentralizing decisions seem urgent, it is like letting the baby take its first step, this is in all spheres. That each delegate of the word celebrate the Eucharist (sharing bread and wine) in the rural communities would be a real institutional change in the Catholic church. If a grassroots organization understands their community better than an organization with an office in a city, why do aid organizations and international enterprises persist in believing that organization means having an office and manager in the city? Do grassroots organizations need accompaniment? They need it, like aid organizations need grassroots organizations to accompany them. If people organize in a cooperative or a community store to administer their loans, technology and commercialization, why doesn´t a second-tier organization support them in these purposes, instead of abducting those services and decisions? How much we need to reflect on that old and still good principle that “the stronger the children are, the stronger their parents will be”.

Concluding

The effects of COVID-19 tend to produce more extremely impoverished people, like the title of the novel of Victor Hugo published in 1862 (Les misérables). Along with extreme human impoverishment, the extreme impoverishment of nature, compiled in Laudato Si: “the cry of the poor and  the land.”

Between 2000 and 2014, according to ECLAC, 33 countries of Latin America and the Caribbean reduced people in a situation of hunger (extreme poverty) from 73 to 38 million. Julio Berdegué of the FAO stated that between 2015-2018, without the virus, those 38 million increased to 43 million people. ECLAC projects that if economic growth in 2020 falls by 6% we will have 73 million people hungry, the same amount that there were in 2000. And with hunger, probably, will come social and political rebellion. Playing with hunger is playing with fire.

The solution to hunger that aid organizations have practiced and continue suggesting is that States provide food, and that they rely on social and economic organizations; in fine print this means that governments, with the taxes paid by the entire society, buy from large corporations GMO food, coopting grassroots organizations and providing that food to hungry populations. This movie we have seen before, including the magic they tend to perform with the indicators of extreme poverty, its resulting erosion of community assets, and what is called family agriculture, the nullification of native seed, the fact that rural populations become docile masses dependent on aid and electoral patronage, and that aid organizations resist conceiving themselves and organizing themselves as communities, and of something bigger that would cover all of us.

In this article we showed that community efforts can be effective in the face of COVID-19 and the virus of hunger, and that these aid agencies, organizations and institutions of the world that talk about “providing food” as the panacea to evils, might rethink their modus operandi and that culture of believing that they already know the solution without previously knowing the people “in extreme poverty”. We should recognize that if communities organize and have accompaniers who also feel and function as communities, they can – and we can – face this and other viruses, eradicate hunger, producing and distributing food, mitigating climate change and contributing to social cohesion, which prevents violence and instead puts our societies on the path to their democratization.

It is the time for rural communities. It is time for organizations, aid agencies and institutions to feel and act as communities. It is time to feel and think that we are part of something much greater than ourselves.

 

[1] René accompanies rural organizations in Central America, is an associate researcher of IOB-Antwerp University, member of Coserpross (http://coserpross.org/es/home/) and a collaborator of the Winds of Peace Foundation (http://peacewinds.org/research/). Fabiola and Esmelda are advisors to rural organizations in Nicaragua.

Food production in times of COVID-19

Food production in times of COVID-19

René Mendoza Vidaurre[1]

Aid that entraps

On one occasion I talked with a former director of a European aid agency.

-We are bringing in a donation of rice for Central America, so that people would let go of their native seed and end up buying rice seed from our business; we finance potatoes under the same condition …

-Do all aid agencies do this?

-Not all … What do you expect, that they would provide it for free? Nestle did this also in Africa, gave away free milk in the hospitals so that mothers would give it to their newborns, and after some days those mothers did not have breast milk, and had to buy Nestle´s milk.

-What?!

-That is why some organizations in the south, the larger they are, the more deals they make for fewer people, they keep part of that aid; while ecological agriculture or peasant agriculture trips over every trap that they set for them.

-And when does this happen?

-All the time, but even more in times of crisis.

I bring up this conversation held 10 years ago. Under the shadow of COVID-19 multinational enterprises are moving their pieces like a game of chess, while the peasantry is groping about under the inclement sun of April. In many cases governments of developed countries act with both arms, with one arm they help, and with the other arm harvest what the first arm planted; it is their foreign policy where “nothing is free,” These practices of dispossession are intensified “more in times of crisis.”

In this article we show the urgency of producing food in the circumstances of COVID-19, the adversity that these circumstances represent, and the opportunity before our eyes. We identify the indigenous and peasant families who produce the food in the region, the basic grains, beans, rice and corn, even though in this article we emphasize more beans and corn. We expose the intentions of commercial mediation and the dispossession “traps” of capitalism with its “two arms.” And we make an effort to present proposals from grassroots organizations – we are referring to first tier cooperatives, but it extends to associations, associative enterprises, rural banks and peasant (or community) stores.

1.     Introduction

According to the IMF (https://www.imf.org/en/Publications/WEO/Issues/2020/04/14/weo-april-2020), as an effect of COVID-19, the world economy is going to decline this year 2020 (-3%), particularly the economies of the so-called developed countries (-6%). This can be expressed in the fact that investment and consumer spending falls. For the countries of the south, that means that their export products are going to have less demand in Europe and the United States, which in fact is already happening; with drop in demand, prices fall for products like meat, coffee, bananas, apples…Will the same thing happen with basic commodities like beans, rice or corn? By way of hypothesis, for the case of Central America, if the supply of basic commodities falls more than demand, then their prices are going to rise, and low income consumer families will be affected. Let us remember, in Latin America there are hundreds of varieties of corn and beans, but in Central America some varieties are the ones that are produced and consumed, like red beans in Nicaragua, Costa Rica and El Salvador, or black beans in Guatemala. There can be corn like what is used for corn flour with varieties from Mexico, but the indigenous and peasant communities in Central America consume the corn that they produce.

The quarantine in the United States and Europe means that people are confined to their homes, which is why their consumption goes down. This means that the price of products, particularly the products that are not basic commodities, will fall. For example, if the price of meat in the United States drops, this affects prices down the line in the mediation chain in the meat industry,  which reaches down to the farms and haciendas themselves in countries of Latin America. The graph of the FAO (see http://www.fao.org/worldfoodsituation/foodpricesindex/en/) reveals dramatic drops in the months of January to March in vegetable oils, sugar and meat, a drop that according to other reports, continues in this month of April.[2]

Products like beans and corn also are dropping, but to a lesser extent (see yellow line for cereals on graph). In Mesoamerica, beans, corn and rice are basic commodities, they are the number 1 ingredient in the Mesoamerican family plate of food, which is why it would be difficult for their demand to drop. “As long as there are beans with tortilla and some corn, the rest is a treat”, people are heard saying in the communities.

Even though in Latin America those crops are produced by producers of different sizes (medium and large in Argentina, Brazil, Paraguay and northern Mexico), in Central America, particularly in the case of corn and beans, almost all is produced by small producers. In this region (see Table 1), even though the data is from 13 years ago, it tells us that there are a little more than two million basic grain producers, who, including their families, represent a little more than 10 million people, and they constitute 56% of the total rural population and 29% of the total population of the region.

 

Table 1. Number of basic grain (corn, beans, rice and sorghum) producers & rural  population 2005-07
  Basic grain producers (thousands) Rural population basic grains (column 1 x aver. family size) Total rural population % Rural pop. BG / total  rural population
Guatemala 941.8 4,673 6,935 67
El Salvador 325 1,481 2,719 54
Honduras 385.1 2,024 3,738 54
Nicaragua 289.3 1,565 2,440 65
Panamá 115.7 551 919 60
Costa Rica 7.6 30 1,664 2
Total 2,064.5 10,337 18,415 56
Source: Baumeister (2010), Pequeños productores de granos básicos en América Central. Honduras: FAO-RUTA. http://www.fao.org/3/a-au202s.pdf%20 This is data based on standard of living surveys and agricultural census.

 

Table 2. Basic grain areas 2006 (hectares)
  Corn Beans
Guatemala 791,759 247,822
Nicaragua 343,160 228,518
Honduras 305,000 128,000
El Salvador 240,978 87,379
Panamá 54,570 9,860
Costa Rica 6,260 14,035
Total 1,741,727 715,614
Source: Baumeister (2010)

This population produces 2,457,341 hectares of corn and beans: see Table 2. Guatemala, Nicaragua and Honduras have more production area. Both crops are cultivated at 3 times of the year: first planting (May), second (August) and third (December); plantings that coincide with the rainy seasons by edaphoclimatic zone.

Since the quarantine affects the entire region, the agro-chemical industry and banks are limited in the scope of their action, which means that the provision of credit, seed and agro-chemicals for planting basic grains is limited. The decree of a quarantine reduces the spread of COVID-19, and at the same time, limits farm production, not so much because families are confined to their homes, or because peasant and indigenous families are “confined” to their farms, but because the movement of producer families in the region, except for Nicaragua, to do their purchases of inputs and financial transactions is limited; for example, in Honduras, with the curfew people can only leave their homes one day per week as determined by their identity card.

As an effect, the supply of corn and beans tends to be less: by planting smaller areas in May, less smaller volumes will be harvested in July, which is why the second planting is going to be smaller…If this happens, the scarcity of basic grains in the entire region is going to cause an increase in prices and possible hoarding of large volumes to do price speculation[3]; in fact, the price of beans already increased starting on April 21. Going back to Tables 1 and 2, we conclude that if other countries drop their production by 30%, Nicaragua should increase its production areas to contribute to the region.

How should this situation be addressed? After this introduction, we summarize the mediation practices that make bean supply and demand possible, but mediated by unfair institutions, that affect human population and nature. Then we involve the efforts of international aid and we warn of its risks. Then we describe a different path as a proposal. Finally, we lay out a decisive and unconfined accompaniment on the part of those of us who say we are accompanying rural families. In the conclusions we recall that we need to open ourselves to the people who are more underprivileged.

2.     More of the same with businesses of mediation

In general, we are seeing an intensification of the old practices of mediation, more of the same. Meanwhile, part of the peasantry is preparing to grow basic grains with relative autonomy. There is no variation in the mediation technology and relationships, in spite of what is said in the world that after COVID-19 “nothing will be the same”.

The logic that traditional mediation intensifies is: dependency on agro-chemicals and certified seed, unfair weighing and disproportionate application of percentage of defects, disinformation, absence of incentives for product quality, and the power of ideas like “more inputs, more production”, “without glyphosate there are no beans and corn”, and “clearing land causes joy” -clearing land refers to deforestation or felling trees to plant basic grains or for ranching.

Within this logic there are three types of mediation. The first, businesses or intermediaries provide seed and agro-chemicals to be paid with beans or corn, under the condition that the entire harvest be sold to them. The second type is businesses or cooperatives that offer a package the includes seed, agro-chemicals and technical supervision, to be paid with beans, and on the condition that they be sold the entire harvest; the difference with the first type is that in this second version they offer them C$100/qq over the street (market) price. The third type of mediation is scattershot, there are people from the community itself who lend money under terms of usury to families who are not able to save to pay for the rental of land and to buy uncertified seed, they are families whose harvests are sold to local buyers, who collect the harvest for municipal mediators (“truckers”), who in turn sell the grains to provincial buyers. The first two types of mediation export beans to other countries in the region, particularly to Costa Rica and El Salvador, countries that produce less (see Table 2) and have a large population that demands grains; the third type also export to countries outside the region.

The effects of these 3 mediations are multiple: loss of soil fertility, increase in the resistance of insects to agro-chemicals, pressure to cut down patches of forest that still remain on peasant and indigenous farms, lack of water in the communities because the deforestation leaves the water sources and creeks unprotected, systematic reduction in the profit margins of grains for producer families (the nefarious “plier squeeze”: more expensive inputs, combined with lower prices for peasant produce), migration and sale of land, erosion of communities, hoarding and price speculation…

Those who escape from this network of mediation throughout the region are indigenous and peasant families with small areas of land. They are families who cultivate for their own consumption, who store native seed, use little or no agro-chemicals, and sell their surplus grains to the highest bidder. They are families who live in relatively stable communities. With or without quarantine, these families will continue producing. These families and communities, nevertheless, are ever fewer, the new generations are being de-peasantized, which is why it is easy to find communities that 30 years ago were owners of land, and now mostly are families who plant grains on rented land.

3.     Efforts of international aid organizations

Before the crisis we heard different voices from international aid organizations, including the so- called fair-trade organizations. Their practice seems to be “more of the same” as well; this worldwide discourse that “everything will be different” after COVID-10 is beginning to be carried away in the wind.

Some organizations look to support NGOs whose staff are confined to their homes. Other organizations, and this is what we uncover in this section, remember rural families, but tend to fall into or brandish two old modalities of aid.

The first modality intensifies the first two types of mediation described in the previous section, and at the same time is distinct from them. It intensifies because it provides credit and induces them to make an arrangement with traditional mediation to sell them inputs and buy their harvests. It is distinct when they work with second tier cooperatives to collect the grains and sell them to international organizations, or some large buyer; in general they pay for and demand quality. In the context of COVID-19 this type of practice is intensified.

The second modality is being revived with COVID-19. It is an old form of aid that generally emerges “in times of crisis”. It goes well with the story that we described at the beginning of this article. There are organizations that donate in cash or food to “more vulnerable” families; it was a boom when Hurricane Mitch hit in 1998, or in 2001 when prices for coffee fell to $70/qq for export quality coffee. To do so, aid organizations use the cooperatives or NGOs to identify the families in a vulnerable situation, and to channel the donation. Let us magnify this type of aid to see its possible adverse effects on the explicit objectives that they pursue.

Aid organizations ask the administration (manager and technical team) of the cooperatives to prepare a list of families, not members of the cooperative. On these lists generally are a good number of people without land, or with little land; most of them are day laborers, and in the corresponding periods grow basic grains on rented land, or work in a sharecropping arrangement with the owner of the land, and pay the rent generally with their savings from harvesting coffee. When the donation gets to this sector, even though the good intentions of the aid organizations might be praiseworthy, it results in two risks that can be counterproductive to the spirit of help that motivates the aid organizations, and counterproductive to the reason for being of the cooperatives. What are those risks?

 A first risk is that a good number of these families, on receiving the aid, might decide to not plant basic grains, or reduce the area that they are planning on planting. It can happen with peasant family owners of small areas of land. And it can happen with day laborers. A day laborer, on receiving an amount in cash or food that meets their needs that day, and the following days, their first reaction, coherent with this mentality of a day laborer, is “to not work”, in some cases even “look for beer” (alcoholism). In other words, the aid can result in less area planted, which means less food, which means more problems particularly for women concerned about putting three meals on the table. This type of aid, in the long term, can cause a bigger crisis in the family, even  selling off the little land that they have or their yard. If the family does not plant, and prefers to consume the donation, without saving or investing it, in a matter of three months that family is going to be in a worse situation, because they are not going to harvest, and so will cry out for new aid. Since the cooperative was the channel for the first aid, they will expect the cooperative to resolve their problem.

A second risk is that the sustainability of the cooperative might be diminished, and crack the social cohesion of the community. The members, on realizing that they are not part of the list, and that instead are subsidizing aid to non-members, are going to have their idea that “the members are not in charge in the cooperative” be confirmed, and some with debts to the cooperative will say that “they are not going to pay.” The organs of the cooperatives also tend to be weakened in their functioning, because the aid organizations erroneously assume that the cooperative is equal to its management, they make arrangements with them, and pressure them to execute the donation; the administration tends to obey them under the rule of “you don´t look a gift horse in the mouth,” while the organs of the cooperative are placed to the side. In terms of the community, the non- members not benefitted by the donation, resent not being part of the aid, so possible long standing internal schisms revive. The population will feel that it turns their stomachs to understand the message of the donation: “you have to be impoverished to receive aid,” “the working person does not deserve aid”; which is contrary to the Law of Talents from Matthew 25, or certain values about one´s own effort that tends to be promoted in the communities.

Taking these risks into account, international aid organizations that make donations to impoverished families should be coherent with their own policy: accepting the effects of their actions. If they donate, they should do it every 3 months to those families for at least two years; delivering the donations directly to beneficiary families, so that the benefitting population might applaud or complain to the donor organization. The cooperative, one that is committed to its sustainability and that of its community, should not get wrapped up in unsustainable actions, and even less so, if these actions have the potential to erode the future of their organization and their communities.

National and international aid organizations are good for moving about in the aid market, grassroots cooperatives should recognize them for that skill. Grassroots cooperatives, those who are seeking their sustainability and that of their communities, know their families better, aid organizations should listen to them and learn from them.

4.     An alternative path from those who are more impoverished

In the context of COVID-19, if traditional mediation intensifies their unjust mechanisms against the peasantry and the environment, and if international aid organizations impose their “aid that entraps”, in the short term, low supply and institutional situation of hoarding will be felt, famine could break out, as well as water scarcity in an agriculture which deforests and is dependent on agro-chemicals. Without the peasantry producing, and a change in the institutional arrangement that would respect the right of the population to access food, the region will be affected. In this section we sketch out a different path, not just donations, not just business, but contributing to the production of food in the short term, and through that “window” entering into long term change, local and global living communities with sustainable agriculture that restores their soil and water.

Table 3:  Costs of production for beans (C$*)
  With agro-chemicals (1 mz) With sustainable agriculture (1 mz)
Land rental 2500 2500
Labor 8000 12000
Agro-chemicals 5700 0
Agro-organic 0 5000
Total 16,200 19,500
Financing (30% costs) 4860 5850
* To get cost in dollars divide by C$34 = US$1

Source: estimate with support of  ing. Elix Meneces

In the last week of April people finish the arrangements for renting land and begin to prepare the soil for planting, awaiting the “rain showers of May” – the first rains of the year. Let´s remember, some families plant on their land, they need minimal support in credit for seed and other costs; some families rent land to plant basic grains, they have difficulties in coming up with the C$2500/mz that the land owner charges, maybe they need 50% of that amount; some families seek to plant by halves, they expect that the land owner would provide the land and seed, or between two people, they rent the land and work it 50-50. These families, growing their grains, on harvesting them need to save their seed to begin a life less dependent on mediation and aid, then they need to improve their soil and protect their water… They can do it if they organize into cooperatives, associations or associative enterprises that move on the basis of agreements in their assemblies.

In the face of this situation, international organizations and grassroots cooperatives can join forces. Both have a common, explicit objective: help the most vulnerable families, and that there be water for life. Correspondingly, they should agree on the fact that aid should help. How?

The cooperative can finance the amount that families need to rent land and obtain their inputs (see Table 3), and/or go into halves with families that desire to do so. The table shows that the area of sustainable agriculture is more expensive, that is because it requires more labor, which also should be read as greater creation of employment and environmental benefit.  The cooperative can finance 30% of an area with agro-chemicals and an area with sustainable agriculture, supervise those plantings, and technically advise the family within the framework of community. The condition for this service would be that the families pay the loan with beans, commit to sell their harvest to the cooperative, that 50% of the area be cultivated without agro-chemicals and with organic inputs[4], and that they protect water sources throughout the farm. In the case of compliance by both parties, the cooperative would distribute their surplus in accordance with the norms of the cooperative, a distribution which is both social and individual: 10% legal reserves, 20% social fund, 20% capitalization of the cooperative and 50% individual distribution in accordance with the quantity that the producers have sold to the cooperative. In the long term, these sustainable products could be better remunerated. What would you prefer, reader, rice and beans with glyphosate or without glyphosate?

Under these agreements the cooperative can collect an estimated 25qq/mzs of beans and 35qq/mzs of corn; if a cooperative under the terms described would support 100mzs of beans and 100 mzs of corn, it would collect 2500qq of beans and 3500qq of corn; we can imagine what is possible with 20 or 100 cooperatives taking on these practices. 5% of this total could be saved as seed, to organize the second planting (August). The rest of the volume of grains can be sold in accordance with the health situation and the demand for food that we would have in the months of July, August and September; cooperatives can make more favorable decisions for society and social justice, while capital only sees merchandise, money and moves under the justice of the market.

Consistent with this perspective, a cooperative can commit to producing organic inputs in an ongoing way. It can do it by itself or in alliance with international enterprises that offer organic inputs to revitalize soils, and not like the chemical inputs that are directed only at the crop and are only short term. This would mean working with landowners who would revitalize their soil in the long term, and working with families who would rent land from landowners for a minimum of 10 years, because the revitalization of the soil happens over years and its benefits are lasting.[5] Landowners will benefit from a stable agreement and from those practices that revitalize the soil, in addition to the financial benefits.

Through this short term “window” of organizing the production of food, the cooperative can enter to work on the in-depth issue: mitigating climate change with sustainable agriculture and energizing living communities.

There is a perspective here in which international organizations can redefine their forms of aid. It is a perspective that in the long term transforms traditional mediation and “aid that entraps”, leads them to respect and empower the rights of people to produce and have access to healthy food, and respect the rights of nature. It is a perspective that encourages mechanisms be directed to fair weighing, quality control with incentives, prices with redistribution, and the fact that communities can scale up by adding value to their products and their waste.

5.     Accompaniment needed

Some people from NGOs confined to their homes are not going to move about; we respect their decision, even though they can help us studying the behavior of markets, and reflecting on the changes that the NGOs themselves should begin. Some of us who are accompanying the rural families who are organizing, we are “confined” to accompanying families in their communities. What does it mean to accompany?

The biblical passage of the Road to Emmaus (Lk 24: 13-25) can be a guide. The Puerto Rican theologian, Carmelo Álvarez, says: “This passage encourages us to walk in the midst of uncertainty, which is being transformed into certainty and confidence. Jesus approaches these hopeless, frustrated, and hurting travelers/disciples, and accompanies them without showing his identity. He establishes a dialogue of travelers. And he patiently provides elements that illuminate the faith! He is able to get the travelers to be receptive to his words and presence. So, an invitation emerges, “stay with us” (…) The Supper calls for sharing, revealing the Mystery …Today, more than ever, we need the Pilgrim of Emmaus, so that he might help us with this presence, to continue walking with the faith of open eyes…”

This accompaniment should include three elements: studying, training and innovating. Studying people to apprehend ways of expanding their relationships of cooperation. We can suggest something to people IF we know their situations, like the producer Rodrigo López from the community of Ocote Tuma (Waslala, Northern Atlantic Region, Nicaragua) was telling us, “if you do not understand, you do not see”; accompanying is the people themselves teaching us to advise them – “stay with us”. Training means creating conditions for awakening, taking on the consequences of our actions and decisions, awakening to the way  of life that we are leading, the way of working and way of organizing ourselves, realizing that no matter had bad off we may be, we always have something good to hold on to. Innovating along with families forms of making the proposal just described a reality, innovating day by day in agriculture, commercialization, collective organization and learning. The people that we accompany, we need to understand that studying, training and innovating are interdependent, it is the holy trinity of accompaniment – understanding in order to see.

Each cooperative can be the Pilgrim of Emmaus. Each church, University and NGO could be the Pilgrim of Emmaus.

6.     Conclusions

After COVID-19 “nothing will return to what it was before”. This phrase is hollow when we look at the current behavior of  traditional mediation of capital, products and words. We must make that expression a reality to the extent to which we build different futures, futures more socially and environmentally just and equitable.

In this article we have started from the idea that basic commodities, like basic grains, could become scarce as an effect of COVID-19, that in the face of this possibility, it is urgent that indigenous and peasant families get involved in producing. But that they do so under different conditions from those imposed by traditional mediation and by the aid industry, whose actions do damage and create perverse incentives for producers as well as for their organizations. Let them produce in alliance with local organizations, with incentives in which landowners and producer families all gain in the short term, and as living communities gain in the long term.

This proposal is in relation to basic commodity foodstuffs that encompass the entire population of the region. It is about growing basic grains whose first planting season is about to begin (May 1). But if we still are not able to work at total strength in this season, we can begin, and prepare ourselves for the second planting (August). The same can be done with vegetables – squash, cucumbers, garlic, summer squash…

This proposal is even more important, because it involves families who are farther down, the most impoverished families who sustain humanity, they are 29% of the total population of the region. The mentalities of this 29% are even much lower from centuries of domination, but that with good accompaniment, like that of the Pilgrim of Emmaus, the good of that population can emerge as well as the good of their accompaniers.

This is a proposal for the grassroots organizations who maybe have embraced only export crops, so that they can include basic commodity crops. Not just because they are primary foodstuffs, but because getting involved in them will provide them roots in the communities and local markets. It will also feed into their environmental perspective, particularly the indigenous populations will make us understand that the land has life, is the mother, and therefore it is not conceivable to buy or sell “the mother” or mercilessly drown her with agro-chemicals. Or is it?

[1] René has a PhD in development studies and accompanies rural organizations in Central America. He is a member of Coserpross (http://coserpross.org/es/home/), associate researcher of IOB-Antwerp University, and a collaborator of the Winds of Peace Foundation (http://peacewinds.org/research/).

[2] Even though the fall in the prices of sugar and (palm) oil is due more to the fall in the price of petroleum, products that are used for the production of biofuels. We are grateful to Arturo Grigsby for this information.

[3] Even if the supply of basic grains were less, possibly it would be enough to feed the population. What might happen is hoarding that might cause famine. In this sense, it is worthwhile to dust off the study of A. Sen (1981) Poverty and Famines: An Essay on Entitlement and Deprivation, Clarendon Press, Oxford. In that study, Sen shows that there was no lack of food in the 1943 famine in Bengal (India) or the famine in Ethiopia in 1972, but social institutions that hoarded food and deprived people of their right to have access to food.

[4] 50-50 is viable, while a radical change of cultivating 100% with ecological agriculture could be unreal. The advantage of the ecological area is that it is intensive work, generates Jobs, and makes use of resources existing in the community itself. The ecological agriculture area part implies a radical change: betting on the soil instead of betting on a crop.

[5] On this issue of rental within a context of drought, see: R. Mendoza, 2015, “la sequía y el arrendamiento de la tierra”, in: Confidencial. https://confidencial.com.ni/author/rene-mendoza-vidaurre/

Open Letter to International Aid Organizations re COVID-19

Managua, April 12, 2020

Good morning, friends from international aid agencies,

Out of the friendship that I have with a good number of you, I write you this letter from a Central America immersed in an unfavorable context imposed by COVID-19, like most of the countries in the world.

Surely you are rethinking your 2020 agenda and your post CIVID-19 agenda, due to the fact that your budgets will tend to drop, because the economy is deteriorating and governments are adjusting their budgets to the issue of health, and because COVID-19 is leaving us a new institutional context, strengthened States, markets-elites weakened and a new perspective on climate change, while our societies are slowly awakening.

COVID-19 is revealing the “emperor has no clothes” (story written by Hans Christian Andersen, in 1837): “disaster capitalism” for decades privatized public goods like the health care system, has dispossessed indigenous peoples and peasant families of their lands, and has appropriated natural common goods (wood, minerals, water, oil…); a plunder possible thanks to the hierarchical, authoritarian and patriarchal structures of our own societies. This is the fertile soil for COVID-19 to multiply like sunflowers or soy beans on long plantations. COVID-10 is affecting the entire world, but affects more vulnerable people, the elderly, the Afro-american and Hispanic populations in the United States, because they are an impoverished and low paid population. It is a virus that is transmitted not just by coughing, but through normal breathing. Even without touching them, the virus is squeezing the working class, and diminishing the three meals of families in the informal economy. Even though the mortality affects more men, women who deal daily with family meals and human health suffer the daily stress more than any other social group, and are those most affected by gender violence. Impoverished people from the rural area who distrust the State from centuries ago, will prefer to die in their homes than go to the health centers. The cry of the earth and the cry of impoverished people is heard more severely in the universe.

It is important to connect the short-term urgencies with the long term needs. In the short term, it is important that they be based on facts like the effects of the virus that I just mentioned, and prevent big capital from imposing their economic logic on human life – that people go back to work sacrificing human lives. In the long term we must recognize that COVID-19 has to do with the impact of capitalism that has eroded our society and our common home, planet earth – which commonly is repeated as climate change. This is the fertile soil for COVID-19 and other diseases that scientists predict will come. It is our duty to keep big capital from wanting to ignore the current reality and return us to the “normality” prior to COVID-19. We need to change not for a while, but forever.

There is a saying that “behind every adversity is an opportunity”. The world is awakening, there is the opportunity. Humanity is realizing that the first floor that sustains the edifice of humanity are the indigenous and peasant families who produce food and protect nature, above all when these families are organized into different associative forms in their own communities, led by principles of social and environmental justice. It is not nefarious agro-business, the mono-cropping system, industrial animal raising or extractivism led by market justice the path for preventing diseases and dealing with climate change. This is the opportune moment to work with these families who are organizing, particularly because of their ecological knowledge and traditional practices.

International aid organizations should think about quick ways to capture alternative resources, and/or adjust their resources to the opportunities that would lead us to build societies with social and environmental justice. Thinking about more effective ways to work with grassroots organizations (associations, cooperatives, social enterprises, community organizations, social movements) that move about in the communities themselves, not so much with NGOs (or second tier organizations), that are confined – for safety – to their homes and cities. We should think about mechanisms that would ensure work at the grassroots level in order to expand sustainable production. Because the worst is not COVID-19, what is worse are the conditions that incubated COVID-19, and what is coming after it. And it is this alliance among community organizations and some international aid organizations more committed to social and environmental justice that can change for the good these post COVID-19 tendencies.

Cordially,

 

René Mendoza Vidaurre, PhD

Associate Researcher of IOB-University of Antwerp

Collaborator of the Winds of Peace Foundation (publications at: http://peacewinds.org/research/)

President Coserpross Cooperative RL

http://coserpross.org/es/home/

rmvidaurre@gmail.com

+505-85100007

 

Riding astride coffee yield and quality in Nicaragua

Riding astride coffee yield and quality in Nicaragua

René Mendoza, Javier López, Ivania Rivera and Warren Armstrong[1]

Good coffee

“Do you know why I invited you to this coffee shop?, a European buyer, who is also a grade Q coffee-cupper, asked me. “Because they told me that they serve quality coffee here”, he responded to his own question. With that the waiter came up, and he asked for an expresso – coffee with more flavor and texture. When we were served, he took the first sip and made a face, “this is garbage.” Why? I asked. “There is no coffee shop in this country with good coffee, and we are in a coffee growing country!” His words shook the floor under me, and I came back at him, “you buy coffee throughout Latin America, where have you tasted good coffee?” Taking another sip of coffee, he said, “In Colombia, in Bogotá, even in the poorest coffee shop you find good coffee.” “Well… we are a coffee growing country, but the culture of coffee shops is new,” I said to him, “like looking for a needle in a haystack.” Looking at me with a certain amount of compassion, he said, “That explains it, but it does not justify it.”

(Based on a conversation between René Mendoza and a coffee buyer in 2019)

Coffee quality is expressed through its aroma, fragrance and flavor, the fact that its beans are healthy and clean, that they are dried well, grew on good soil, and in the company of other crops…Behind these attributes and actions are dozens of human hands in several phases and moments. That quality is relatively stable over time, as the French proverb says, “Price is forgotten, quality remains.” Prices can be like milk when it is boiling, they go up and down, while quality is more stable. What is happening with coffee quality in Nicaragua? The cupper-buyer in the story gives us a troubling indication: it could be that we do not have a good taste for coffee, and even so produce good export beans. Maybe.

Responding to the question, in this article we describe the situation of coffee yield and quality, we explain reasons why, we propose a path for improvement, and in the end provide conclusions that summarize the findings and leave the reader with the approach that should guide us. Even though the story about “good coffee” refers to national markets, and specifically to that of coffee shops, in this article we work more on coffee exports, whose quality is also connected to the quality of the coffee offered in the coffee shops of the country. We do this in good measure from the experience of Aldea Global, an association that sells more than 150,000 qq of coffee a year, and from the space of the dry mill where we want to look at the coffee chain, including its production and commercialization.

1.    Coffee Yield and Quality

The prices of goods and products in markets frequently vary, as do interest rates on money; in contrast, the productivity and quality of an agricultural or non-agricultural product are less unstable, change more slowly. In the last 40 years the productivity of several crops has been maintained with minimal variation: for example, coffee, the crop that this article addresses, varied from 9.23 to 12 qq export coffee per manzana[2] over a 50-year period!

Prices for coffee vary every day in New York (international point of reference) and in local markets; while the demand for quality coffee is increasing in international markets. In the 1990s there were few brands, among which fair-trade brand stood out. In contrast, in the current millennium there are dozens of brands  (rainforest, bird friendly, utz, 4C, Nespresso AAA, café practices, etc) and denominations of origin or geographic indication (Juan Valdez, Colombia; Marcala, Honduras; Blue Mountain, Jamaica; Volcán de Oro, Guatemala; Tarrazú, Costa Ríca) which illustrates the growing world demand for a quality product. Nevertheless, precisely when the demand for quality coffee is increasing, the yield and score that measures the quality of coffee in Nicaragua is dropping: see Graphs 1 and 2[3]. The yield we refer to is the quantity of pounds of parchment coffee (with 50 % of humidity) that are needed to get 100 lbs of export quality coffee (with between 10-12 % of humidity) – subtracting  a number of pounds of imperfect coffee (broken, black, severe insect damaged, withered beans). The quality score, for its part, measures fragrancy, aroma, taste, acidity, body, uniformity and sweetness of the coffee. This is expressed by cupping points: from 70-80 is “common or commercial coffee”, 80-83 are “specialty coffees”, 84-89 “regional exemplary plus +”, 90-95 is “Exemplary coffees” and 95 and above are “unique coffees”[4].

Graph 1 shows us that to get 100 lbs of export coffee in the middle of the 1990s 215 lbs of parchment coffee was needed, then 3 more pounds, and since 2010 it shot up requiring 232 lbs by 2020. In that same period the rate of imperfect coffee has increased from less than 5lbs/qq in the 1990s (and export quality coffee of 96-98%) to more than 10 lbs/qq in 2020 (and export quality coffee of 85-90%). The same thing is happening with coffee producer families, in the 1990s with 18 to 19 buckets of raw cherry coffee they were able to get a load of coffee (200 lbs of parchment coffee), and in 2020 that load required more than 22 buckets of raw cherry coffee, “My coffee weighs less and less” observe the small producers.

Graph 2 shows us that coffee quality, after jumping between 1990-2000 from 80 to 84 (range of “regional exemplary plus+”), thanks to the differentiating actions of cooperatives within the fair trade framework (Mendoza et al, 2012; Mendoza, 2012[5]), has been systematically dropping, finding ourselves now in “specialty coffees” with scores of 82, 81 and 80. Organizations that are looking for quality coffee are going find it with difficulty: a score of 84 you will find in no more than 15% of total coffee, the rest is “commercial coffee” with scores below 82.

 

Table 1. Evolution of coffee production, Central American countries (in 1,000 sacks of 60 kg)
1990/91 1999/00 2009/10 2018/19
Honduras 1568 2985 3603 7328
Nicaragua 461 1554 1871 2510
Guatemala 3271 5120 3835 4007
Costa Rica 2562 2485 1477 1427
El Salvador 2465 2598 1075 761
Panama 215 166 138 130
Source: http://www.ico.org/historical/1990%20onwards/PDF/1a-total-production.pdf

So while markets are increasing their demand for quality coffee, because the societies´ tastes are improving and differentiating, and countries like Colombia; and Costa Rica are out ahead responding to these international and national demands, and Honduras is taking huge steps in production volume, quality, organization and branding[6], Nicaragua is being overlooking and is losing terrain (See Table 1 that compares the production volume among Central American countries from 1990/1 to 2018/9: Costa Rica, El Salvador and Panama are going down; Guatemala is maintaining their levels; Nicaragua is growing and Honduras is unstoppable). Even though we are paying attention to volume, let us focus on our question: What is causing this systematic drop in coffee yield and quality in Nicaragua?

2.    Elements that are affecting this quality and yield

These healthy or broken beans, with good favor or undrinkable, are determined by human actions in the space of farms, wet mills (pulper, washing and drying) and dry mills (drying, hulling reprocessing and selection). After looking at Graphs 1 and 2, what are their causes? The three responses commonly heard are: there is a scarcity of labor, and therefore the coffee ferments on the plant itself; that producer organizations increasingly are buying poor quality coffee from intermediaries and non-members, which is why their own members become disillusioned with their organizations, and have quit producing quality coffee; and that the State, in contrast to Colombia, Costa Rica and Honduras, is not investing in coffee growing, nor in positioning the country internationally.

These three responses have some basis. In this section we will focus on two elements of the context, climate change and lack of liquidity/resources, and within this framework, coffee growing culture and the dry milling process.

2.1  Climate variability

Climate variation, combined with farm neglect, affect coffee quality and yields. We provide three elements that illustrate this fact. The first, in 2012 this combination of factors contributed to the fact that coffee rust and anthracnose wiped out a good part of the coffee (Mendoza, 2013[7]; Brenes et al, 2016), particularly the varieties of caturra, maragogipe and bourbon –varieties of the arabica species. Caturra constituted more than 60% of the coffee in the country, considered to be a high- quality variety[8]. As a consequence, caturra coffee plants were replaced by catimor plants; catimor is more resistant to rust, has the potential for producing larger volumes, but has a modest contribution to coffee quality. Catimor today represents more than 60% of the total coffee in the country.

The second element, mold and coffee with phenol. One hears more frequently that coffee has “severe mold” and even “phenol”. The mold is from over fermentation, be that on the plant itself, or because the pulped and washed coffee was not immediately dried, which in turn is due to rain, heat, or lack of coffee pickers. The phenol is the change in the chemical composition within the bean as an effect of drought and heat in the coffee plants, as well as the storage of wet coffee; coffee in humid environments gets dampened, generating fungi that produce the taste of mold and phenol. Generally, when cupped these coffees are classified as “undrinkable”.

Finally, withered beans, beans that even though red, have a ripe side and another speckled side; small beans also are an effect of climate change. In the last 3 cycles coffee has been observed that had a good appearance, but had small hair or fuzz that was left on the bean, which is due to lack of water. These types of affected beans are on the increase, made worse in the 2019/20 cycle due to the fact that during 2019 there were droughts of up to 30º C, and very hot early mornings, which caused uneven and misshapen maturation. If between September and October it either rained a lot, or it did not rain at all, that affected the ripening of the coffee, which, no matter how good a job is done in the wet mill, will result in insect damaged and spoiled beans. All this has affected the coffee yield and quality. Table 2 summarizes the physical defects of the beans and their possible causes

 

Table 2. Coffee defects and their causes
Physical defects of coffee Causes
Climate change Beans with brown or black coloring Lack of water during the development of the fruit
Misshapen and wrinkled beans Poor development of the plant due to drought or lack of nutrients
Beans with small and dark perforations Attack by insects (coffee berry borer or weevil)
Scarcity of resources Yellow colored bean Problem of soil nutrients
Management of farm and wet mill Shell bean Over ripened raw cherries picked up from ground
Broken/chipped/cut bean Poorly calibrated pulper
Withered bean Prolonged fermentation

 

Beans with changes in its normal coloration Prolonged storage and poor storage conditions
Beans with intense yellow caramel or reddish coloring Delay between picking and pulping
Silverskin, can tend toward reddish brown coloring Dirty fermentation tank, use of contaminated water, overheating, storage of wet coffee.
Management of dry milling Flat bean with partial fractures Coffee walked on during drying process; hulling of wet coffee
Bean with white veins Dampened after being dried
Source: based on Federacafe – Comunidad Madrid, http://cafe-noticias.over-blog.com/article-36108278.html

2.2  The “suffocating embrace” of prices

Added to this adverse environment is the so called “suffocating embrace”, which is a harmful embrace that is asphyxiating the peasantry. With the “left arm”, coffee prices go up and down, like milk when boiled, but seen over a 100 year period producer prices are decreasing in terms of the final value of coffee (Mendoza y Bastiaensen, 2003; Mendoza 2013[9]); and with the “right arm”, the prices of farm inputs are systematically rising. So, this “big embrace”, the price of coffee dropping and the prices of inputs and capital rising, is suffocating producer families. If costs of production surpass $100/quintal, and the price of coffee drop to close or equal to $100, it is difficult for coffee to receive its 3 fertilizations, 2 moments for shade management, weeding and 4 leaf sprays a year. If the application of inputs drops, that not only affects the volume of coffee, but also increases the rate of imperfect beans, and lowers the cupping score – for example, it is difficult for a bean with little fertilization to ripen properly. In addition, the catimor variety, that has more potential in terms of production volume, also is more demanding in terms of fertilizers – what has a greater yield, eats and drinks more.

This “embrace” was more suffocating in the last two years (2018 and 2019). In the 2018/19 cycle coffee prices dropped to $98 in September 2018, and to $100 in December 2018, while prices for agro-chemicals rose by 30%, as a result of the new tax policy in the country starting February 28, 2019[10]. In addition, due to the political crisis of the country, financial institutions (formal banks and micro-finance organizations) decided not to provide credit, except for Aldea Global, that instead expanded their rural credit portfolio and geographic coverage; due to that same crisis, international coffee buyers signed fewer purchase contracts, contracts that tend to allow cooperatives to get loans from the social banking sector. In other words, producer families did not have resources, which is why they applied little or no chemical or organic inputs. The effects of this are expressed now in the 2019/20 cycle in higher rates of imperfections and lower coffee quality.

Organizations are also experiencing another type of “embrace”. With the “left arm” they feel international pressure for better coffee quality, and with the “right arm” the parchment coffee (APO) that they receive from the producers is of lower quality. Between 1996 and 2010 it was just the reverse, the demand for quality coffee was less, and the producer families were providing better quality coffee, which is why it was relatively simple to sell large volumes of coffee. They were the times when the international perception of the quality of coffee in Nicaragua was good; that perception changed over the last 8 years, the coffee quality of the country is in question, correspondingly buyers are diverting their paths to other countries.

2.3  Coffee management on the farm

Even though climate change and the scarcity of resources through the “suffocating embrace” are having an impact on coffee yield and quality, coffee growing families also are experiencing structural changes within themselves. Producer families who established their coffee farms and other crops starting in 1990, after the “big war”, are getting beyond 60 years of age, which is why part of their offspring are taking on farms now divided up through inheritance.

This transition from one generation to another is facing challenges. First, farming is less diversified, it is more specialized in coffee or cattle or vegetables. This means that, in the case of coffee, families receive income practically only once a year. Secondly, a good number of the generation that are taking over farms now, inherited that culture of “coffee growers”, with the difference that now they only have 2 or 4 manzanas of coffee, and many times those manzanas are affected by rust and anthracnose. Third, with the end to the agricultural frontier, crop rotation with uncultivated areas is reduced, and with that, land has lost fertility (“it is tired”); the low application of inputs is only able to maintain production volumes, which is why the farm is less profitable for them. Fourth, the work culture “from sunup to sundown” of the older generations has ended, the new generation that grew up under the belief that “a pencil weighs less than a machete” mostly works only in the morning; and many times, erroneously interpreting what it means to be “coffee growers”, only want to “be in charge”. With only 2 mzs of coffee!

Consequently, that generation in transition that feels itself to be “coffee growers”, lack income in the months from March to October, in a context of climate changes and under the “big embrace”, have not been careful with their farms: i.e. take care to regulate their pulpers, not pulp too early nor wash too late, but respect the fact that coffee needs 12 hours of fermentation, calibrate the pulper depending on the coffee variety, being watchful over the drying…In a parallel fashion, the communities where they live seem to have lost that social warmth that encouraged them to cooperate, now they have less or nothing in their gardens (“my Mom´s green thumb”), and nearly work only on coffee, so have less reasons to exchange…The absence of that social cushion seems to put a damper on their economic life.

2.4  Coffee management in the dry mill

The dry mills receive the coffee that is the fruit of the effort of those producer families who find themselves economically, socially and environmentally asphyxiated. That is why this coffee comes in the form of shell beans, broken beans, with strident flavors, insect damaged, moldy, or healthy, clean beans with acidity and great flavor and aroma…In the dry mill they can take some actions to improve that coffee, even though their possibilities for maneuvering are reduced.

They cannot reduce the imperfection rate, they measure it, and can reprocess the coffee to achieve a certain level of quality, and with a certain number of defects that the markets demand. Likewise with the mold, even severe mold can be removed in drying with the sun; in the case that they are not able to get rid of that mold, they separate that coffee so that it does not affect the rest of the coffee, and sell it separately.  They can manage it in micro-lots and have more control over its defects, mix varieties and improve something of its quality; but nothing more. They can also keep the yield from dropping too much, if they avoid trails of coffee on broken plastic or loss of beans from moving coffee from one place to another.

They can do that, if the dry mill is managed honestly, transparently and with access to the right technology. It is common to hear workers of the dry mills say that “they switched out the coffee” of such and such cooperative, or such and such members, that “the coffee got mold in the truck because there was no patio space to unload it”; or hear managers say that “they reprocessed it twice” without the owners of the coffee being present to know if they really did “reprocess it”, and whether they did it because it was necessary, or only to earn $2 or 3 per quintal, or that the “yield was 235 lbs for 100lbs” without there being proof of the weight, and control over the movement of the coffee in the reception area to the patio, to the warehouse, to the huller, to the sack…In many cases, those rumors are unfounded, but as the saying goes, “where there is smoke there is fire.”

Also from an external perspective, it is heard that buyers are looking for scores of 84, and in the dry mill, on not finding coffee from anywhere with that score, and on not being able to improve coffee quality based on re-processing the coffee with less than 5 defects, “they send coffee with a score of 82 saying that it is 84”. This might work once, in the short term, but in the medium and long term these practices of deceit undermine good relationships with buyers.

Even when the dry mill is managed honestly and transparently, they can incur in deficient management and neglect the importance of being committed to coffee quality. They could order containers of coffee with 11 defects, and that in the end they are prepared with 10 defects. It could be that a lot of coffee is classified as second quality, because it has fermented beans or some other damage, but that it is recoverable as first quality coffee with timely cupping, preparing the coffee with a smaller number of defects and working on it with different preparations. These errors can be due to the fact that there was a change in personnel, and this new staff did not have enough training and coordination to be watchful over the coffee drying; or it could be due to inefficient organization, top-down with office managers, which limits the responsibility of each person and makes them dependent on doing work that only is directed from above. A form of vertical organization that takes agency away from the people doing the work digs its own grave. If dry mills only bet on volume, not quality, they mix coffee indiscriminately, not guided by the cupping scores, even worse if the container to be sold is commercial grade 79, 80 and 81. They even store coffee with different weights, without controlling the coffee yield [resulting from the milling process]

The management in the dry mills also has to do with technology. The drying is done by the sun and hundreds of people, mostly women, under an unforgiving sun. Given that workers´ pay is low, we assume that they are not thinking about coffee quality, but about that sun and the time when the day will end. The consequence of that type of drying is that the beans end up uneven and over-dried. Also, most of the dry mills work with old processing equipment (huller, densimeters, vibrating bean separators, elevators, mechanical driers and electronic bean selectors), or new equipment from cheap brands, instead of the latest generation in quality and technology.

Concluding this section, the causes of coffee yield and quality are found throughout the chain, from the farm to its roasting. A family can pick just the red beans, and even so lose  quality for not drying it quickly enough, or because of lack of space in the dry mill, it is left wet for two days. Several actors can make the effort to achieve good coffee, but the increase in temperature and drought can affect the coffee plants. You can have quality coffee, and even so damage it when the appropriate technology is missing – the latest generation. The quality is changed, not from one month to another, but in terms of years and decades. Coffee, and farming itself, is a long- term art, and involves several hands and minds.

3.    Governing coffee

In the years between 1990 to 2000, it was the cooperatives who took on the leadership in improving coffee quality in the country; they did it in a context of relative peace, slight impact of climate change, and more than anything inspired by the fair trade movement. Today the context is different, climate change has worsened, the generational transition has not found its way and the fair trade movement lost strength and became bureaucratized[11], even so, cooperatives and associations can promote the improvement of coffee quality again. How? Figure 1 shows the importance of combining a coffee farming culture with an alliance for a quality cup and principles of well-being, and processing that adds value. These three mechanisms, mediated through coordination in learning, can make a difference. These are not proposals that are pulled from the sleeve of some magician, nor just the result of data analysis and literature, they come from observing and experiencing in the field this combination that the figure expresses as the pathway.

The first pillar, differentiating action on the part of producer families. That they renovate and repopulate their coffee fields, and scale up in their treatment of coffee processing. They can recover varieties of arabica coffee with high quality potential, and grow them under agro-forestry systems, adapting their management in accordance with their variety[12]. A problem with catimor, for example, is when the producer gives it the same treatment that he gives a native variety; catimor should be picked when it is red (not speckled nor green), providing it more fermentation time than the caturra variety. To feed the soil (fertilize it), the chemical or organic input should be based on the formula resulting from the soil analysis. For the producer family to get those inputs, it must have in-kind credit under arrangements with input companies that lower their prices by volume purchasing, which is what Aldea Global does, and it works. They can experiment with coffee  processing (wet milling); for example, so as to not mix qualities in the pulping stage, they can have a water tank that serves as a separator of floater of green, empty or poorly formed beans; or manage the fermentation by coffee varieties.[13]. This requires a new culture of being coffee producers, who are motivated by a spirit of studying their realities (farms, families and communities), observing them, investigating new information, recording data, analyzing it, being guided by soil analyses and climate forecasts to manage their farms[14]; all this is more possible with the current generation, which has higher levels of formal education, and makes more use of the internet.

The second pillar, the construction of direct connections between buyers and groups of producer families, based on quality cupping scores and principles. In terms of quality, each producer turns in coffee individually, and the dry mill can manage it by group and lots, register the information and have the coffee cupped by farm, so that buyers are guided by the cupping score; a family receives payment/price based on the quality of their coffee. It is assumed that they will invest more to improve the quality of their coffee even more.

In terms of principles, Aldea Global has developed a procedure and mechanisms for providing incentives for good agricultural practices, which can inspire other organizations in the country. What does Aldea Global do? It provides awards for compliance with principles, like having an orderly farm, not using prohibited chemicals, paying laborers in compliance with the labor regulations in the country, management of honey waters, protection and conservation of nature, environmentally friendly practices, recycling containers. These awards depend on the score that each member achieves; producers with a score of 70% have access to “x” amount of award per quintal;  those that achieve 80% a bigger award, those with 90% an even bigger award, and those who achieve 100% get the “big” prize.

There can be producers who might receive a good price because of their cupping score, and not receive an award, if they get less than 70% in terms of their compliance with the principles. Even though it is more probable that a producer family with more than 70% compliance with principles would have coffee with a cupping score higher than 82. The logic is that complying with the principles is taking care of the farm and the well-being of the family, which is also going to be expressed in coffee quality and in good yields. Consequently, if buyers (national and international) and certifiers visit these producer families, and help them to establish themselves, they will be betting on the quality of family life, which leads to quality coffees in a sustainable and lasting manner.

The third pillar, the organization of the dry mill guided by values of honesty and transparency. To add value to coffee quality, the administration of the dry mill must have a counterweight in an autonomous board of directors with the capacity for supervision, and the owners of the coffee (members, cooperatives or organized groups) must have access to see the patios where their coffee is found, review their labels, be there at the moment of hulling, and review the data registry on the weight of the coffee at reception, on the patio, in the warehouse, before hulling and after hulling. With this three-way relationship of counterweights (administration, board members and owners of the coffee), the dry mill can manage micro-lots of coffee that come from different geographies of the country, and using different types of drying (natural, with honey and washed). This implies coordinating along the entire chain; for example, natural coffee implies picking only the red beans (none green or speckled), raw cherry coffee is transported that same day to the patio for drying, thus keeping the coffee from fermenting. The micro-lots of more than 50qq export coffee can be treated with differentiated qualities and respond to the demand of small roasters in the world. It also implies making use of appropriate technology (latest generation), like an industrial plant that treats coffee from its raw cherry state, thus preventing coffee from losing weight (2-3% in the fermentation and another 2-3% for the 12-13 days of drying) and conserving its quality.

These three elements of improvement are possible if a culture of learning is developed among the different actors around coffee. This is cultivating a spirit of investigating, observing, asking questions, recording information, taking notes, analyzing information and making use of the technology that todays world offers, including technology for massifying soil analyses, so that information flows to producers.  The producer family can manage catimor or maragogipe varieties if they learn how to do it in a differentiated way; coffee drying will add value if people know how their actions make a difference…Without awakening the worm of doubt that each one of us has inside us, any work will be boring, and any information will pass under our noses without us noticing; guided by questions and a procedure for organizing and analyzing information, every human person will be mobilized, taking on their task as a mission that is worthwhile carrying out.

4.    Conclusions

Failure is simply the opportunity to begin again, this time, more intelligently. Henry Ford

We began the article with the question about what is happening with coffee quality. That word quality is an aperture to agriculture and our society, it tells us on a small scale what is happening to us. And what is happening? Coffee yields and quality in the country are getting worse. What is the reason? Climate change, prices (of coffee and inputs), neglect of the farms and the not very transparent management of the dry mills, which are concentrated in few hands. The latter can be seen in light of the type of drying-hulling in countries like Guatemala and Colombia, where drying is done on the farms themselves and in grassroots organizations, without the drying and hulling being concentrated in few hands; or in countries like Costa Rica, where an industrial plant processes coffee from its raw cherry state to its hulling, with a positive effect on coffee quality.

In contrast to Colombia, Costa Rica and Honduras itself, Nicaragua has not had a State that invests in coffee growing with a long-term perspective. There has not existed an institute that studies each coffee variety, or that has laboratories for innovating varieties. The State does not regulate the weighing of coffee in commercial trading, and within the dry mills. There are no financial incentives nor human recognition for producing quality coffee. There is a need for a State that would work to position the brand of coffee of the country in the outside world, and that at the same time might work for the population to replace sugar with a good taste for coffee.

But at the same time Nicaragua has more than 30% of coffee producers organized into cooperatives and associations. Among those organizations is Aldea Global, which is committed to the use of technology and information, which it takes to the producers to manage their farms based on soil analysis and climate forecasts[15]. Also, Aldea Global is committed in the long term to improving coffee quality and yields based on technology that would help o control the temperature and humidity of the beans, and based on automated systems with sensors. These elements will guide the technical assistance provided to producer families and in the dry mills.

The fact that yields and quality are dropping is an opportunity, to paraphrase Henry Ford. Of course, Ford himself was surpassed by the Toyota industry, in spite of that, his phrase continues to have value[16], particularly seen as a society. How can coffee quality be improved “more intelligently”? Organizations (cooperatives, associations and businesses) must join efforts to organize a space for learning around coffee farms in association with other crops. Without investigation-learning, the different actors will be walking in the dark, and the producers, like oxen, will prefer their old yoke and sell coffee to traditional intermediaries, without concern about yields and quality, which means that in the long run the entire country will lose, including the producers themselves. A producer family can fill itself with passion, learn and seek their own vision, if organizations become democratic, transparent, efficient, and if together they organize information supported by technological and informational innovations, like big data and artificial intelligence (machine learning). This type of organization, like Aldea Global, having this learning infrastructure, would be able to accompany the entire coffee chain and other crops.

The old Fordist model continues guiding a good part of the coffee in Latin America, also expressed in its political structure of exclusion and inequality; so it is that we hear that “more volume, more earnings”, which lead us to coffee shops that the story at the beginning of the article talks about. Nicaragua can recover ground and position its quality coffee based on adopting a culture of learning, supported by information management and the latest generation technology. It could be that money might be a limiting factor in this, but like the history of so many innovations teach us, more important is the vision of transforming the countryside, pursuing product quality, pushed by families who are improving their lives. In this way we could hear that “the better the quality, the better our lives” which could include improving our own taste for quality coffee. It is not a matter of “adding money” and having coffee quality, it is a matter of “thinking more and running around less”, as they say in “tiki-taka soccer”.[17]

[1] Javier, Ivania and Warren are from Aldea Global (https://aglobal.org.ni/), president, vice manger and manager, respectively; René is a consultant to rural organizations and a collaborator of the Winds of Peace Foundation (https://peacewinds.org/). Even though most of the authors are from Aldea Global, we maintained objectivity in the analysis, and we added data and experiences of Aldea Global when they were needed.

[2] According to the 2017 Annual Statistics from the Central Bank of Nicaragua, the average coffee yield in 10 years between 2007 and 2017 was 11.97qq/mz; in the  2018 Annual report, a certain amount of improvement was noted between 2014/5 with 14.7qq/mz, and in the following two cycles 2015/16 and 2016/17 with 16.5qq/mz. We still do not have data for the last two cycles (2017/18 and 2018/19). For a study on the decade of the 1980s, see José L. Rocha, 2003, “Revolution in Nicaraguan Coffee Growing” in: Anuario de Estudios Centroamericanos. San José: Universidad de Costa Rica 29 (1-2).

[3] Both graphs are based on information from several coffee buyer organizations, and on data that we have followed since the 1990s, seer: R. Mendoza, 2003, La paradoja del café: el gran negocio mundial y la gran crisis campesina. Managua: Nitlapan-UCA; R. Mendoza, 2013, Gatekeeping and the struggle over development in the Nicaraguan Segovias, PhD thesis, University of Antwerp..

[4] The classification by scores is based on: Susana Gomez, “¿Cómo se determina la calidad del café?” en: QuéCafé, https://quecafe.info/como-se-determina-la-calidad-del-cafe/

[5] R. Mendoza, M.E. Gutiérrez, M. Preza and E. Fernández, 2012, “Las cooperativas de café de Nicaragua: ¿Disputando el capital del café a las grandes empresas?” en: Observatorio Social, Cuadernillo No. 13 El Salvador, http://www.observatoriosocial.com.ar/images/pdf_cuadernillos/cuader13.pdf; For English version see: https://peacewinds.org/wp-content/uploads/2020/02/Articulo-CAFENICA-Cooperativas-english.pdf ;  R. Mendoza, 2012, “Coffee with the Aroma of Coop” in: Revista Envío No. 372. Managua: UCA https://www.envio.org.ni/articulo/4558

[6] According to the International Coffee Organization (ICO), in 2018 Honduras was the seventh largest coffee producer and exporter in the world. In the last 10 years it has become the largest producer in Central America; in Latin America it is behind Brazil and Colombia. While the weight of coffee in farm production value dropped in Nicaragua, El Salvador, Costa Rica and Panama, in the case of Honduras it increased between 1980 and 2011 (G.C. Brenes, C. Soto, P. Ocampo, J. Rivera, A. Navarro, G.M. Guatemala y S. Villanueva, 2016, La situación y tendencias de la producción de café en América Latina y el Caribe. San José: IICA y CIATEJ).

[7] R. Mendoza, 2013, “Who is responsible for the Coffee Rust Plague and What can be done”, in: Envio 379, Managua: UCA, https://www.envio.org.ni/articulo/4664

[8] In terms of the effect of coffee rust and anthracnose in the region, Nicaragua was the country most affected; the neighboring country, Honduras was not much affected at all (See: Brenes et al, 2016).

[9] R. Mendoza y J. Bastiaensen, 2003, “Fair trade and the coffee crisis in the Nicaraguan Segovias. In: Small Enterprise Development, Vol. 14.2.

[10] If we add other costs to this, like labor, the situation is even more “asphyxiating.” Note that even though the price for a bucket of picked coffee is the lowest in Central America, the fact that a load of coffee (200 lbs of parchment coffee) that required 19 buckets prior to 2016, currently requires more than 22 buckets; this means that the producer families are paying for an additional 3 buckets, which increases the cost of production, which does not necessarily benefit the workers.

[11] Samanth Subramanian (2019, Is fair trade finished? The Guardian, https://www.theguardian.com/business/2019/jul/23/fairtrade-ethical-certification-supermarkets-sainsburys) analizes how Fair Trade (FLO), based on prices, is losing ground with the abandonment of the FLO seal on the part of large corporations, questioning whether fair trade is achieving what it promises, and preferring instead to organize their own seals and mechanisms to measure their social, economic and environmental impact. We have also warned from Central America about the involution of fair trade, see R. Mendoza, 2017, “Toward the Reinvention of Fair Trade, or “Hacia la re-invención del comercio justo”, en: Tricontinental, Bélgica, http://www.cetri.be/Hacia-la-re-invencion-del-comercio?lang=fr

[12] Aldea Global supports agro-forestry systems: 1,320 of its members are implementing it in 1500 mzs. There are also other organizations in the country that support these system; what is unique about Aldea Global is that they do it with the purposeof producer families improving their coffee quality.

[13] These experiments include testing the form of management common in Costa Rica, of receiving raw cherry coffee, and in a mechanized way, separating ripe beans from speckled and green ones, and then passing the uniform ripe beans directly from the pulper to the mechanical drier, eliminating fermentation. Ivan Petrich (2018, “Fermentación: Qué es & Cómo Mejora la Calidad del Café”, https://www.perfectdailygrind.com/2018/07/fermentacion-que-es-como-mejora-la-calidad-del-cafe/) explains the advantages of aerobic and anaerobic fermentation for coffee quality.

[14] For people of any age, but particularly young women and men, we have a guide to help them become students of their realities. See: René Mendoza, 2019, Jovenes y la oportunidad de construir puentes hacia el futuro. Una Guía para investigar e innovar. Managua: Nitlapan-UCA. It is also available at: www.coserpross.org . Aldea Global has information on more than 12 members with whom it works, information that anyone can access.

[15] Aldea Global is the only organization in Nicaragua that, starting in March 2020 will have their own first version of their app, to pilot providing personalized technical assistance by cell phone to 150 producers. The biggest challenge in this will not be providing that information, but using it. The app is a software progran that those 150 people will Access through their cell phones.

[16] A  2019 film “Ford vs Ferrari”, directed by James Mangold and written by Jez Butterworth, John-Henry Butterworth and Jason Keller, shows the change that Henry Ford II underwent in the competition with Ferrari. That precise moment of change: not just producing quantities of vehicles but winning competitions, illustrates the spirit we are seeking.

[17] Style of Barcelona where they pass between one another while opposing team wears itself out running after the ball, and when an opening appears, attack the goal.

Cultivating the golden bean: Volume and quality

Cultivating the golden bean: Volume and quality

René Mendoza, Fabiola Zeledón, Elix Meneces, Hulda and Eliseo Miranda[1]

Up until 2010 we buyers who were looking for quality coffee, we first would come to Nicaragua. After 2010 we no longer did, first we go to Costa Rica, then Honduras … (Coffee buyer).

In the 60s and 70s tons of people came to Nicaragua from El Salvador and Honduras looking for work, now we are the ones who go to those countries, looking for work. (Flavio Cardoza, producer).

In the dry coffee mills imperfect coffee reached double digits in this 2019/20 cycle: 10%…15%; black beans, faded, chipped, full black beans, insect damaged beans…The fungus moved from “slight” to “severe” and smelled like fish. On the farms of producer families instead of doing “three passes” (three passes of picking red and almost ripe coffee during the coffee season within 2 months), they saw themselves forced to do only two, and even only one pass, because of lack of pickers (labor), while they neglected to regulate their coffee pulper which resulted in those broken and chipped beans. What makes the coffee quality and its production drop? In this brief article we list 4 basic elements on coffee farms in Madriz, Nueva Segovia and Matagalpa, and at the end we offer some suggestions.

What affects coffee production and quality

The literature is full of technical reasons. We list what we observed in this 2019/20 cycle, and what producer families commonly say, based on their own observations, as well as the staff in the dry mill.

Figure 1 shows two scarce resources and two limiting structures, which have a high impact on coffee volume and quality.

A first element is the reduction in nutrients for the coffee plants. In the 2018/19 cycle, the prices for coffee were low. In September 2018 it dropped to $98, and in December 2018 it was at $100, while the prices for agrochemicals rose, as a result of the new tax policy in the country. Not only that, but the financial institutions implemented a policy of loan restructuring without providing new loans. In other words, producer families saw their resources dry up, which is why they applied little or no agrochemical or organic inputs. This had a repercussion on coffee quality, which was seen in the current 2019/20 cycle, precisely when prices went up, reaching $123 on December 16, 2019. Consequently, producer families thinking was “I am going to receive now  the same thousand córdobas as last year; this season money is tight, in spite of the fact that prices are better than in the last cycle.”

A second element refers to the scarcity of labor. Pickers are going to coffee fields in Costa Rica and Honduras. Their argument: “They pay us better there, in addition we pick more than we do here.” Isn´t it the same coffee? Yes and no. Most of the coffee of Costa Rica is sold as specialty coffee at better prices; while Honduras has passed Nicaragua in production volume. Both countries have greater productivity, even though in Honduras it is due more to increase in area. This means that the person who picks coffee on small farms in Nicaragua, picks less in a day because the farms have less production; in addition, the price paid “per lata”[2] is low, and varies between 30 to 50 córdobas, plus food, per lata. “It doesn´t work for us,” the pickers complain. Producer families argue that they would prefer to pay all in cash (without food), but the pickers want food, and many of them pick very little, and by midday are already out of the fields and asking for their 3 meals. This situation means pickers are scarce, the consequence of this is that the coffee is not picked on time, with a corresponding loss in volume and quality.

A third element is the mentality of believing themselves to be coffee growers in mono-cropping systems. The producer families who established their farms with coffee and other crops, starting in 1990, after the “big war”, are now getting beyond 60 years of age, which is why their offspring have been taking over farms already “cut up into pieces” through inheritance. Given that in the last 15 years families have become dependent on coffee as a mono-crop, a good number of these offspring, as new family units, inherited also this culture of feeling themselves to be “coffee producers” with 2 to 4 mzs of coffee, which at the most produces 10qq export coffee per manzana, which is why they lost the culture of working “from sunup to sundown” in taking care of the farm, and no longer go out to pick coffee on other farms. Their problem is that they inherited coffee fields affected by coffee rust and anthracnose, which they have to replant now on land which is more worn out (low fertility). Consequently, that combination of feeling themselves to be “coffee producers” and at the same time not having income in the months between March and October has them “underwater” in financial and marriage crises, which is why the children are growing up without Fathers, while they neglect their farms, the regulation of their coffee pulpers, drying, diversification…

The last element is the variation in the climate. Rains were expected for December, which help the grain thicken and ripen; but it did not rain, rather the temperature increased, which is why a good part of the flowering period was lost and the coffee with little liquid did not thicken. The beans that were able to thicken did not reach their optimum level. Many beans, on being picked, pulped and washed, looked as if they had been dried for 6 days. The rains that started on January 10th were not expected, were unnecessary, their prolongation for more than 10 days damaged the roads, reduced the time for picking the coffee, and made it difficult to transport the coffee, and hindered the sun drying process.

The combination of these elements has the power of undermining plans and commitments, and above all, making the families depressed before the harvest ends.

Recovering coffee, the farm, the community

Figure 2 lists the ideas that lead us to confront the 4 elements that affect coffee volume and quality.

Some people from that generation that is now passing 60 years of age are still a good reference point. “My Dad gets up at 4am, drinks his coffee and goes out to work the farm; if in the morning he goes to town to do some task, and returns at 4pm, he still goes to the farm.” (Rebeca Espinoza, Samarkanda). If we add to that culture of dedication to work, youth dedicated to studying their realities and innovating, the families could save resources and invest them, doing their numbers, producing fertile land that would provide them product volume and quality.

If that combination responds to a long term perspective, one that avoids “cutting property into pieces” and children growing up without Fathers, and is committed to the diversification of the farm and  processing what they produce, these families could mobilize their members for activities like coffee picking on their own and their neighbor´s farm, and would attract workers from other places.

If we cultivated that work and study culture under a long term perspective, in a space of renovated cooperatives, the members of both sexes and different ages from the same community could cooperate better, and improve their collective actions, like transporting, drying and milling their coffee in their own community, selling any of their products, producing their own farm inputs, protecting and saving water, or preventing domestic violence.

Conclusion

Recovering the coffee quality that we achieved between 1996 and 2005, which the buyer refers to at the beginning of this text, is a challenge. Getting our people to stay in the country picking coffee, which Flavio observed in hindsight, is another challenge.

Both challenges are not achieved with the hundred year old ideas of the elites: “More inputs, more production”, “better price, more quality”, “investing only in coffee to buy the food for the year”, “the more members there are, the better the cooperative”, “farming is something men do”. The consequences of this cookbook, sadly reproduced by most of the farm cooperatives today, are destroyed families and farms, degraded environment, and the advance of elites expelling the peasantry from their communities.

Addressing those two challenges is possible with families that change as people, as they build a new type of cooperative, one in which families cooperate with one another to generate new technologies, organize and analyze new information, and add value to the coffee and a dozen agricultural products.

[1] The authors are part of a network that facilitates the training of cooperatives governed by their members.

[2] Lata refers to old cooking oil cans that were used to measure picked coffee beans for paying workers. The term is still used, although the measuring is now mostly done with 5-gallon plastic buckets.

The Principle of Stewardship in Cooperatives

The Principle of Stewardship in Cooperatives

René Mendoza Vidaurre[1]

I dedicate this article to my daughter Itza Irene and my sons Jaren and Inti Gabriel.

 

Planting a cooperative

A cooperative was attacked from outside and inside; it went broke. Its administrative council called the last assembly where they provided an accounting of each cent of the cooperative, the motorcycle, the computer, the desks, the portfolio of debts…

Given that their own sons and daughters and other youth from the community formed a new cooperative, the assembly agreed to donate all their resources to them: “We started with 10,000 córdobas and we worked 20 years, receive these 300,000 córdobas and let them serve our community at least 30 times more than us”, they said. Along the paths and creeks the rumor of the people was left etched in the stones: “The president, the Vice President, all left with a clean slate”, “humble and honest they started, humble and honest they left”. And more helpful”, shouted an elderly woman.

The 10,000 or 200,000 was not as important as the humility, honesty and service.

Is this what it means to be a cooperative member? Asked the granddaughter of the president. “In part, daughter, in part”, responded her mother as she gave her a hug.

The graveyard for cooperatives is sizable, larger in some countries than in others, generally because their members forget that the cooperative is a mean for a larger objective, their community. They do not follow their own agreements. Some of their board members “get big heads”, stay in their posts under “death do they part”, and others take over the resources that belong to all the members of the cooperative. In this way the collective effort turns into “damned money” that is served mouth to mouth in bars, and this type of cooperative, like a vine that climbs into the branches of lemon, tangerine and orange trees, choking them off and preventing them from bearing fruit, chokes off the communities where their members come from.

The parable reveals a different prospect, where even death, a good death, can generate life. Sporadically we know how to find some cooperatives that, even going broke, plant the future: they leave good footprints in women and men who were their members. This footprint is like the collective effort of 300,000 córdobas that the cooperative did not split up into pieces, nor let some few appropriate them, as happens with most peasant families who are always dividing up their land into pieces. Those members, in assembly, agreed to give it to the new cooperative that was starting, and committed it to return to the community “30 times more”. Behind this collective effort are values like humility and honesty that guide their steps, and what the cooperative cultivated and the elderly woman observed: service. Behind these values and that sense of service is the vision of a cooperative as a means (instrument) of living communities, that is the horizon in which that inheritance of values and resources become very important, but let us notice, just “partly”, as the mother points out to her daughter.

Those of us who also share these perspectives and support these processes in rural communities tend to be asked by rural families, with some incredulity, why do you come in to support us? What interest do you have in us when not even presidents of cooperatives nor mayors visit us? Even though in our mind it is that “part” of being cooperatives that the stones whisper “along the paths and creeks”, sometimes we have responded recounting the experience of the Catholic Church between 1958 and 1978, within the framework of its social doctrine, that opened the doors of their churches and monasteries and allowed for decades of religious and laity to accompany impoverished families in their communities; that experience allowed believing that God was living in these impoverished families, a seed of service and commitment that has germinated in hundreds of people.[2]. Other times we have responded alluding to the fact that each person has a sense of service, and that each person deploys that service in a thousand ways in the places where they live.

In this article we show the idea of stewardship as a more thought out response to the questions that they tend to ask us. Stewardship is a perspective that gives more meaning to cooperativism and that adds another additional “part” about what the mother saw and the daughter heard in the parable. We do so basing ourselves on something from the indigenous, religious and business traditions, to then conceive of the cooperative as a rooted organization that could take on stewardship in their communities. At the end of the article we re-conceptualize this idea of stewardship as the greatest motor and the most intense light of humanity.

1.     Seventh generation thinking

 “Now we crown you with the sacred emblem of buck antlers, the emblem of your lordship. Now you will become a mentor of the people of the Five Nations. The thickness of your skin will be seven tranches, in other words you will be a test against anger, offensive actions and criticism. […] Look and listen to the wellbeing of all the people, and always have present in mind not only the present but also the coming generations, even those whose faces are still below the surface of the earth, the future nation that has not yet been born.”

(Law of the Iroquois nation written between 1142 and 1500)

A Confederation of five Iroquois nations in the United States wrote their law between the years 1141 and 1500, that started seventh generation thinking. It is a principle of innovative stewardship, conceived and taken on prior to the Spanish colonization in Latin America, and before the British colonization in the United States. The principle suggests that in each deliberation its impact up to the seventh coming generation should be taken into account, that is, thinking about the great-great grandchildren of our great-great grandchildren. In other words, when we deliberate, make decisions and take actions we should ask ourselves: “Where is the seventh generation in these decisions? Where are we going to take that generation? What are they going to have?”[3] Imagine if you were an Iroquois, let us say  centuries ago, when the climate was relatively stable, your people were connected to nature, living certainly with conflicts between nations, you had that thought to the seventh generation. Meanwhile now, in the current conditions of climate and degraded nature, we realize clearly that we have abandoned that thinking. In spite of that, this thought challenges and guides us. Correspondingly, the decisions that we make today on the environment, water, energy, social relations between indigenous and non-indigenous people, the relations between women and men, or about the life of the communities, are going to have an impact on the lives of coming generations, up to the seventh, which is a nation of people who have yet to be born. It is a matter of living and working for the benefit of that future seventh generation; that really is thinking long term!

There are two ways of understanding this principle. The first way, if each generation differs from the previous one by 20 years, the seventh generation is in 140 years, which is why we should think about 140 years in our deliberations and decisions: see Figure 1.

The second way is varying the thinking about the seventh generation, and expanding the period in years in which a person is touched (influenced, awoken[4]) in their lives by their great-great grandfather/grandmother, who in turn was touched by their great-great grandfather/grandmother[5]. In other words, we place ourselves in a 360 year period and from there, looking 180 years backward (7 generations) and 180 years forward (7 generations), we can understand our roots and plant our future: see Figure 2[6].

When from our peasant realities we look at the questions asked within the framework of the seventh generation, they seem very hard. Following the first perspective, most peasant families are reducing their land area by inheritance and the sale of land, this means that the seventh generation will be left without land, and with a relationship divorced from nature, for example. Given the graveyard for cooperatives and those cooperatives taken over by elites, what cooperative are we leaving for the seventh generation?

Following the second perspective, this very reality of the division of land is demonstrated by looking at the 180 years since our mothers/fathers and grandmothers/grandfathers, and so we question ourselves looking at the the next 180 years: How can we stop this dividing up? What are we leaving the great-great grandchildren of our great-great grandchildren? We can respond to these questions in each family and community, or we can respond to them alluding to current issues like climate change, water…we can also see them from the history of our countries with a historical perspective, issues or challenges like peace and indigenous and non-indigenous social relations. For the case of Nicaragua, Oscar René Várgas (1999)[7] argues, based on an event that happened in the XVI Century, more than 400 years ago, that Nicaragua is a prisoner of the syndrome of authoritarianism and disregard for law; Alejandro Bendaña (2019)[8] presents to us the invisibility and margination of women by historians and the guerrilla leaders themselves in the war of Sandino between 1926 and 1934, something that in light of our current realities appears not to have changed. In that 400-year view and 100-year view, it frightens us to confirm that authoritarianism (hierarchical structures) and gender inequality, both accompanied by violence, changed so much as to not change “even a little”. We find the same thing in each country[9]. It would seem that each generation that has gone by has not been able to leave not even a little change that might benefit the seventh generation, it would seem that each generation intensifies those old and harmful institutions.

The notion of stewardship, from the Iroquois indigenous tradition, begins to move us. It makes us think about the change of any “syndrome”.

2.     Stewardship in the biblical tradition

The Catholic and Evangelical religions, professed by most of the population in Latin America, have the notion of stewardship in the Bible, which can be understood in two ways. The first way is God as the creator of the earth, where people are his administrators (stewards). Paul explains it this way: “Because we are collaborators with God, and you are the work of God, God´s edifice” (1 Cor 3:9). Stewardship is oikonomos: the person who administers. The second perspective is that people, women and men, are co-creators with God: if previously they had to multiply as the creation of God, in the new testament women and men are co-creators: “Go and make disciples of all peoples” (Mt 28:19).

The first perspective assumes that the patrón (owner) of all is God, and that tends to justify “each one of the verticalisms on earth”, warns the ex-Jesuit priest, Peter Marchetti. Correspondingly, Marchetti continues, “at the level of subjectivity, it is up to the grassroots to begin to work on the concept of God”. The second perspective as “co-creators” is a more horizontal perspective, even though the subordinated relationship of nature to human being persists. Marchetti counsels us: “The challenge is recovering traditional ecological knowledge that existed prior to the idea of God the patrón; the path is emulating traditional knowledge to be able to dismantle the idea of God the patrón.” Correspondingly, the Iroquois seventh generation thinking, for example, is very useful for us, because it comes precisely from prior to the Spanish and English colonization, where we could say that the “patrón” is the seventh generation.

From both sections, our challenge is “working on the subjectivity at the same time as the materiality”. The latter is, for example, the democratization of organizations and their economies, while the subjectivity is working on attitudes. Among these attitudes is dialoguing with the biblical perspectives of God as “creator” (patrón) of everything and humans as co-creators, as well as dialoguing with our great-great grandfathers and grandmothers, and at the same time thinking about the impact of our actions on – or dialoguing with – the great-great grandchildren of our great -great grandchildren. Here are the first brushstrokes about what stewardship is, which combines subjectivity and materiality, begins to dialogue with other perspectives, generations and with the attitude itself to free ourselves from the “patróns”, not matter what they may be. Now let us look at how businesses address and take on stewardship, to later focus on cooperatives.

3.     Stewardship in businesses

In the past the church and the military caste dominated the world. 30 years ago the private sector dominated the world. Common interest, the State, education, the church, health care, the army are all read from the perspective of business; for example, each one of these areas or institutions are measured by their efficiency, costs, and their power relationships defined as technical things, that can be resolved through social engineering, through management. It is recognized that businesses create jobs, that they fight against racism, assume actions compatible with environmental sustainability and “social responsibility.” Business people who achieve financial success are admired as true heroes, and are named as directors of health care, education, churches or presidents of countries, like war heroes or religious martyrs used to be venerated, no matter what side they were on.

We identify two perspectives in these enterprises. In the first perspective are most of the large corporations, who prioritize their profits, dividends (% of profits) for their shareholders, while they are desperate to produce wealth today, and satisfy consumer society; this is short term thinking that produces short term results. There are few corporations in the second perspective, they are, for example, investors in pension and insurance funds, businesses that innovate, invest in the formation of their staff and get involved in profitable recycling actions instead of dumping it in spaces of poor countries; they look to develop long term thinking (MacNamara, 2004[10]). Nevertheless, business organizations, like the churches and military structures in past centuries, intensify those millennial authoritarian, patriarchal and hierarchical structures that concentrate wealth and power. It changed so much in order to not change much at all.

Recognizing these hard institutions, and at the same time seeing the potential of companies, Block (2013)[11] proposes the notion of stewardship as

An alternative to leadership. Stewardship asks us to be profoundly responsible for the results of an institution, without forcing the purpose of others to be defined, controlling them or overprotecting the rest. It can be defined more simply as ordering the dispersion of power.

Block defines stewardship as the change in the governance of businesses, that distribute power, privileges and wealth in favor of the people below and people marginalized in the businesses. Stewardship as “alternative to leadership” conceived as hierarchical and patriarchal, that does not subdue nor treat others as “minors” (“overprotected”); more than directing organizations, it is cultivating organizations, more than controlling and deciding for others, it is facilitating so that people might be empowered – controlling is accepting “the dispersion of power”; facilitating is democratizing (ordering) power. Stewardship is seen as an option of action at the service of those with little power and for the common good, it is long term thinking. This is taking care of the wellbeing of the next generation. How can this idea of stewardship be carried out? Block thinks that it is difficult to carry out with the dominant patriarchal leadership of our times, in the service of the short term and being operational with those few who have power.

Block provides the elements that characterize a real stewardship, whose notion we try to draw in Figure 3.

Stewardship has to do with a partnership of working together in democracy, which is opposed to the colonial belief that those above are the only ones responsible for the success of the organization and the wellbeing of the members. It is a matter of empowering each member of the enterprise, where it is assumed that their security and freedom is in their own hands, contrary to depending on those above, believing that they know what the rest of the people need, and contrary to the fact that they treat people as subordinated children. And it is a matter of service, that is committed to their organization and their community without expecting anything in exchange, cares for the common good and creates community, and distributes power and wealth, because it assumes a commitment for something beyond oneself, contrary to looking out for ones own interest at the cost of others.

In this notion of stewardship, of working together, in partnership, empowered and in service, underlies the idea that our life is brief, “we are on borrowed time”, as rural populations say, and our work in any organization or area is even briefer, which is why we want to turn over any task that we have taken on in the past in a more advanced stage. In this sense, let us remember the parable of the talents (Mt 25. 14-30), that we should multiply the talent received; this challenge becomes difficult in the case of peasant families, for whom if that talent was the land that they received from their parents as inheritance, after some 30-40 years that land would have to be more fertile and not “worn out” (less fertile, eroded soils) – something very difficult, while for enterprises, the land conceived as something that produces only based on agrochemicals, it is impossible for them to turn over land in 30 or 40 years with more fertile soils.

Bringing  those questions about the seventh generation here, we would say: How can businesses be built in partnership, that empower and are of service to the seventh generation? How can the land be worked so that it might benefit the great-great grandchildren of our great-great grandchildren? If the land is the mother of any product and any life, can businesses be built of any size with long term thinking, which would be watchful over its social and environmental impact and the elements of stewardship that Block advocates? Paraphrasing Jesus of Nazareth, probably it is easier for a camel to pass through the eye of a needle, than C-Corporations to assume this role of stewardship that Block proposes. Nevertheless, from the world of corporations there are good attempts; B-corporations[12], founded in 2006 and by the end of 2018 totaled 2500 in 50 countries around the world, could meet what Block proposes; B-corporations are certified for having good governance, transparency and good social and environmental impact. Also businesses whose workers become owners, governed by the ESOP law in some countries[13], could be taking on Block´s stewardship, particularly those that function under the approach of “open book management”[14], because they cultivate a culture of ownership (of being owners) for long term success.

4.     Stewardship in cooperatives

B- corporations and ESOP enterprises with “open book management” could be exercising a role of stewardship. But the most suitable seem to be cooperatives, and even more so, if they bring together people with few resources. The problems is that most cooperatives also are an expression of hierarchical structures, like C-corporations, and are more and more moved by the short term thinking of the god of the market. Recognizing this fact, we argue that a renovated cooperative, that “is born again”, can be a serious option. To assume this role of stewardship, the cooperative must take up the ideas of Block and impress on it their own historical essence, because it is with renovated cooperatives that the ideas of Block could have greater possibilities of being carried out. See Figure 4.

We reread Block from the perspective of a renovated cooperative: in partnership we understand that people from different ages (grandparents, offspring, grandchildren), sexes and social sectors (e.g. workers) participate in a cooperative; that the cooperative is a space where each person is empowered in horizontal and vertical agricultural and non-agricultural diversity, using the market and not subordinated to it; and that the members cultivate a sense of voluntary service coherent with the idea of co-creation in dialogue with nature. Given this interpretation, the type of renovated cooperative is one that walks with both of its “feet”, the associative and the business one, is distinguished by its democracy, transparency and for distributing its profits (wealth). With these elements the members, and also their allies, make their own values and cooperative values their own, more and more intensely illuminated by a long-term perspective, and deliberately seeking to have an impact on – and dialogue with – its seventh generation.

This is the perspective of stewardship which a reborn cooperative implements, which pushes it to reorganize itself systematically as an alternative to despotic, hierarchical and patriarchal leadership. This is the promise that each member makes to the other members and to themselves from the first day in which they join a cooperative, which in turn, bears the potential of significant self-realization, which frequently is lacking in our organizations.

Correspondingly, how can a cooperative be reorganized from a role of stewardship? How can a cooperative member be a steward? First, a member accepts an office conceiving it as a service, serving other people, it is not to serve oneself at the cost of the other people. The office responds to the mandate of the members, which is why this service implies willingness and availability, being a person who does not have time, and always has time to serve other people, who listens and helps them to connect events and ideas, so that the members resolve their problems and/or take advantage of opportunities. Coherently, a person who occupies the office of president fulfills their role of president, and respects the role of each member of the Administrative Council and respects the functions of organs of the cooperative (Administrative Council, Oversight Board, Education Committee, Credit Committee). The same does the vice president, treasurer, secretary. Likewise, each member of the Oversight Board, the credit committee, the education committee. In addition to taking on their own role and respecting the other roles, these member help other people to exercise their offices; if the secretary has difficulties in writing the minutes, or the treasurer doing their financial report, the people from other offices, or those who already had those offices, support them (facilitates or trains them), so that they might lean to do the minutes and the financial report, but without taking their place. The assembly does not name people to posts to just to fill a post, nor out of formality, but it is a real need.

Promoting the culture of stewardship is going against the current of the culture of most of our rural organizations, where a person tends to believe they are the patrón and God, it is like a person walked around with 10 hats on their head at the same time, the hat of president, secretary, treasurer, oversight board, assembly, education committee, credit committee…That is not possible, right? That is what generally happens. One of the consequences of this fact is that that person believes himself to be the owner of the cooperative, and treats the members as their “minors”, does not let them grow, wants them to serve him, be subject to him; he disempowers them. “My poor patron, he thinks that the poor person is me” goes the song of Cabral, that seems applicable to this type of person with multiple hats, and who does not obey the mandate of his assembly. A president or manager with the commitment of stewardship is completely different: he supports and celebrates the work of the oversight board, administrative council, credit committee, because those structures help him to fulfill the sacred responsibility of co-creating the cooperative to the benefit of their communities, to redistribute power and surpluses, to empower the members so that they might take their own steps.

Secondly, a cooperative member, with or without an office, administers in a responsible way – and generates – financial resources (money), physical resources (building, infrastructure, assets) and productive resources (coffee, cacao, beans, bananas…) for the members. There is an awareness that those resources will last beyond our present lives. No one individually appropriates them under the pretext that “it is my effort”. Everyone cultivates the relationships of their organization with other global and local actors (financiers, buyers, accompaniers), without centralizing those contacts for their own exclusive benefit. Each person is accountable to themselves, their families, the cooperative and their community. It makes them think about co-creating and benefiting their community and the seventh generation, a task for which they are guided by the virtuous rules from the time of the great great grandparents of their great great grandparents, and in accordance with agreements and rules of their cooperative in line with the cooperative principles defined 175 years ago, in 1844, by 28 working artesans in cotton factories in the city of Rochdale, England. Correspondingly, any loan of money to a member, for example, is done from the appropriate body, according to agreements, with a receipt and later accountability  to the assembly; the board members understand that they cannot make and use the resources of other at their own discretion, that there are organs and rules under which the resources, information and power relations flow. This very specific exercise can be generalized to other levels, including the country, building citizens with rights and obligations, not so much consumer societies.

Third, support to people to exercise their offices, and the fact that there are rules and structures that guide being cooperative members, implies also that the members be committed to learning and changing. If there is no transformation inside each member, if there is no re-evaluation of our desires, yearnings and expectations as far as we are explicit about the harmful and virtuous rules that govern us, any structural change for the operations of our cooperatives will be like a stripped bolt. In fact, in Central America we have experienced dictatorships and revolutions, a boom of organizations and religions, and all those changes have been like stripped bolts, our lives continue being guided by century-old structures and harmful rules that reproduce social, environmental and gender inequalities, which make us see the cooperative as “a thing of men”, “mono-cropping services” and “hierarchical and authoritarian bodies.”

Joining a cooperative means that we have chosen and accepted that relationship of organizational and personal transformation to energize our communities. The choice and acceptance become our contract. Our desires for financial gain, participation, self-expression and the expectations that we have for being part of a community, are only possible if we are committed to the objectives, results, limitations and principles of the organization in general. The agreement on the elements of the contract is the basis for the association and the basis of the community. Stewardship offers more options and local control, in exchange for that promise of commitment on the part of its members, a promise that should be given from the very beginning (Block, 2013).

With these three elements the cooperative can “be born again” and assume its role of stewardship in light of its community, which is as local as it is global. Forming its own membership, generating collective innovations, working on equitable rules, adding value to the products of the community, producing good land…to benefit the seventh generation.

5.     Conclusion

The Church dominated the world for centuries. The military as well. For half a century, businesses have dominated the world. Century after century the land and the relationships between human groups seem to have deteriorated, currently we find ourselves in an inflection point in terms of the future of the earth; the domination of the private sector – the god of the market – intensified it. Our bet is that the decade of 2020 the community might begin, through its forms of cooperative organization, not to dominate the world, but contribute to the democratization of the world, and that we rethink nature not as something subordinated to homo sapiens, not even in a relationship humans-nature, but homo sapiens as part of nature. This is possible if the communities, through their cooperatives, and other organizational expressions, take on the role of stewardship.

In this article we have reviewed the idea of stewardship from the indigenous tradition, religious tradition and from economic business sciences, in order to re-conceptualize cooperatives. From this review and re-conceptualization, we understand that stewardship can be applied to individuals, businesses, organizations, institutions and communities. Stewardship is the word that summarizes the vision of the cooperative, and any organization, for its members. That is so if the community is the starting point, while at the same time the horizon – that community as local as it is global. It makes us learn another way of understanding and organizing life. What is the idea of stewardship that we have been shaping in this article?

Figure 5 shows the perspective of the community that rereads the cooperative in its material expression (organizational) and its subjective expression (personal), from which originate 4 elements that make the meaning of stewardship visible.

The community of human beings and nature is something living, geographically concentrated and at the same time globally clustered through dense relationships around products. This utopia or horizon makes us reread the transformation of a cooperative in its material expression, organizational change, and in its subjective expression, individual change. In other words, a person awakens, for example, to the fact that only through collective actions can some problems be resolved, like hierarchical and authoritarian structures; it is that material-subjective combination that mobilizes the cooperative in its role of stewardship, expressed in its 4 elements. First element, thinking about the great-great grandchildren of our great-great grandchildren, in other words, more than 140 years, which is contrary to the short term thinking or the mining and push button culture, of wanting to earn money immediately believing that tomorrow everything could change. Second element, co-creating that world along with other people, with nature and with divine energies beyond our human comprehension, empowering particularly impoverished people, which is contrary to believing oneself to be the patrón (owners of this world), intensifying social and environmental inequality. Third element, cultivating a spirit of voluntary service, taking on offices and cultivating the cooperative, which in the long term benefits each individual, which is contrary to abusing the cooperatives for personal profit at the cost of coming generations. Fourth element, being guided by human values like humility, honesty and respect for the collective good, which is contrary to just betting on finances.

With this reconceptualization of stewardship, we can reorganize the cooperative in another way. We can even expand on the Iroquois law; that each person have “skin as thick as the bark of a pine tree” to confront not only “anger, offensive actions and criticisms”, but to exercise a stewardship that benefits “the future nation that has not yet been born.”

In the parable, “planting a cooperative, the daughter “reads” being a cooperative is about that collective force, values and sense of mission, while her mother recognizes that precisely is what it means to be a cooperative member, even though just “in part”. With the expansion of the framework that we have worked on, the reader can read this article again and contribute “30 times more” to the effectiveness of their decisions and actions. Even so, in light of the seventh generation, that contribution to the notion of stewardship, surely, will continue being “in part”.

[1] René has a PhD in development studies, is an associate researcher of the IOB-Antwerp University (Belgium), collaborator of the Winds of Peace Foundation (WPF) and a member of the cooperative COSERPROSS RL. rmvidaurre@gmail.com  I am grateful to Steve Sheppard and Mark Lester, president and director of  WPF, respectively, for the inspiration and ideas that they have offered us in the work with cooperatives, and particularly in regards to a very brief first text on this topic, published at the end of 2019.

[2] We recount the experience of the Catholic Church, but the same happened with a good number of protestant churches, particularly the historic ones- Presbyterians, Methodists, Baptists, Lutherans. Also, university students in those years, without necessarily professing any religious faith, also moved to the countryside and marginal neighborhoods. It is also the experience of many people who later on were connected to guerrilla movements.

[3] These questions we adapted from the questions that Oren Lyons, chief of the Onondaga nation, formulated and are quoted in “An Iroquois Perspective”, in: Vecsey, C. and Venables, RW (Eds), 1982, American Indian Environments: Ecological Issues in Native American History. Vol. 46.4. New York: Syracuse University Press. p. 173, 174. For a broader understanding of the indigenous culture in the United States and their lessons for today, see: Kathleen E. Allen, 2018, Leading from the Roots: Nature Inspired Leadership Lessons for Today’s World, USA: Morgan James Publishing.

[4] “Touched” is when a person feels gratitude for something good that someone did for that person. In the context in which we are using it, by “touched” we mean when your great-great grandmother or grandfather made you look at your life in a different way, or something fundamental in your life, that marked you in your feelings or perspectives for the rest of your life. What is yours for the future, the possibility that you, on becoming a great-great grandfather, might influence (“touch”) the lives of your great-great grandchildren, which is possible because you had the possibility of learning about life for nearly a century.

[5] This variation in interpretation is found in “seven generation sustainability” (https://en.wikipedia.org/wiki/Seven_generation_sustainability)

[6] There have also been methodological proposals based on seventh generation thinking. One of them is the alternative proposal to the logical framework, a planning tool that organizations tend to use. See: Kathleen Allen, 2018, “Seventh Generation Thinking – A Replacement for SWOT”, https://kathleenallen.net/seventh-generation-thinking-a-replacement-for-swot/ It deals with locating ourselves in the fourth generation and from them gathering lessons from the three previous generations and using them as information for our future decisions that would include the next three generations. This can be done as an organization, particularly if there are people from 3 generations within its membership; they can be worked on in groups.

[7] Vargas, O.R., 1999, El Síndrome de Pedrarías. Managua: Centro de Estudios de la Realidad Nacional.

[8] Bendaña, A., 2019, Buenas al Pleito, Mujeres en la rebelión de Sandino. Managua: Anama ediciones.

[9] For example, Goodwyn (1978,  The Populist Moment,  New York: Oxford University Press) studied the rural populist movement that occurred between 1870 and 1910, about a peasantry that organized into cooperatives in such a way that they founded their own political party and came close to an electoral victory, but which the political and economic elites coopted and subsumed until crushing them. Goodwyn concludes that that democratic process in the United States was the last opportunity for the US nation to democratize.

[10]Doug MacNamara, 2004, Stewardship, in: Leadership Acumen http://www.banffexeclead.com/iitl/PDF/LeadershipAcumenStewardship.pdf

[11] Block, P., 2013, Stewardship: Choosing Service Over Self-interest. California: Berrett-Koehler Publishers, Inc. 2da edición https://www.bkconnection.com/static/Stewardship_2nd_EXCERPT.pdf

[12] See: Yale Center for Business and the Environment, Just Good Business: An Investor’s Guide to B Corps https://cbey.yale.edu/sites/default/files/2019-09/Just_Good_Business_An_Investors_Guide_to_B_Corps_March_2018_0.pdf

[13] Owners can sell their businesses to their own workers, there is a law in the US and England to facilitate this. In the United States it is called Employee Stock Ownership Plan (ESOP), and in England there are two types, the incentive plan and the savings plan. There are also ESOPs in India.

[14] Jack Stack and a group of workers bought the business of Springfield ReManufacturing Corporation in the 1980s. More than being successful, they designed a transparent form to govern and work the business, which they called “open book management”. See: Stack, J and Burlingham, B., 2002, A Stake in the Outcome, New York: Doubleday.