Category Archives: Ownership

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.

Rural communities and the challenge of thinking about COVID-19

Rural communities and the challenge of thinking about COVID-19

René Mendoza Vidaurre[1]

 

Health comes first

-How are you doing, Pipita?

-Owing money, without beans, grey hair, and …

-If you have your health, the rest doesn´t matter

-Ahh! Yes, exactly! But coronavirus scares me …

-Who isn´t afraid? Fear is the biggest enemy of reason. Think, Pipita, your love for others is stronger than anything…Besides, the rain is coming now!

The entire world is experiencing difficult days. People feel fear, impotence, the desire to cry. The only thing certain is uncertainty. Every person would like to support themselves with something, protect themselves under the shade of a tree. But there are almost no natural, supernatural nor social “trees” anymore. It is when that Nicaraguan phrase becomes even truer, “if you have your health, the rest doesn´t matter.” And health is like the rain, it does not fall from the sky with some prayers, it is something that is provided and strengthened with human actions. And who provides it? And how is it provided? Maybe “the love” that one feels for others provides it, maybe the love with which we were made in a passionate morning helps provide it. Maybe it is time to look farther ahead, because “the rain is coming now.”

In this article we reflect on this rural world, that thin strand between hygiene and the economy, between home, church, health center, and between individual and collective actions. To do this we list the facts or risks, we start to explain this “strand”, we look at how scientific recommendations help these different cultures revive – like plants which dry up become green again when the clouds release the first drops of water, and we point out the role of accompanying organizations. The importance of grassroots organizations in protecting their communities runs throughout the article, while the notion of community matures with the turning of each page.

1.    Conditions that work for and against COVID-19

The situation with COVID-19 seems to be getting worse. The gap between the official information in any country and what is in the social networks is large, with which anxiety buzzes like a mosquito at night. In rural communities this concern is connected to the continuity of classes in school, religious celebrations in churches, and festive crowds, with or without quarantine. People think that through that “door” of the school, church or public transportation, the virus can get into their homes and pass through the community. What are the rural conditions that work for or against COVID-19?

Rural families have some advantages and some disadvantages in the face of the virus. The advantages are: the physical distance between people to avoid COVID-19 is facilitated by the low population density, and because a good number of families live on their own farms; the average age of the population is relatively young, which limits the effect of COVID-19, even though this advantage is evaporating because of poverty[2]; living in areas with little air pollution[3]; communities that have grassroots organizations with members and offices in the community itself, through which they access some information and some collective actions. The disadvantages are: if people are infected, it will be difficult for them to go to the health centers with the first symptoms[4] and it will be difficult for them to stay at home, or prevent visits when rumors buzz along the footpaths of neighboring houses, all of which have the potential to infect more people; the quality of the health centers, in any country in Latin America, is less in the rural municipal capitals  and is inexistent in rural communities.

Gatherings of people in schools and churches is the greatest risk; let us remember that in a church in Washington one member infected from between 52 to 60 members of the choir, 65 were infected in a Zumba class in South Korea, 80 people in a concert. Rural gatherings tend to happen in groups separated by the lack of connection between organizations. Cooperatives, schools, churches and party or governmental organizations (e.g. councils, mayor representatives) move in a “walled off” manner; each person in their own world, and under their own leadership. Churches move in their religious world and with their own leadership structure. Schools with their educational programs and with their own institutional leadership. Cooperatives focus on the economy with their own leadership structure. And so on. This separation means that the gatherings move separately, isolated, which is why people tend to behave in an opportunistic way: “let others spend on hygiene to prevent COVID-19”, “I don´t care, I don´t have children in school”, “I am going to church because God is protecting me, what better doctor than God?”

This separation is worse with external institutions. Markets are reduced to offering hygiene products, raising their prices because of increasing demand, and move by means of intermediation; States limit themselves to making an effort in health centers; aid organizations provide resources within the circles in which they move; and second tier organizations and NGOs expect to mediate resources[5]. None of them tend to cross over “to the other side of the river”, in the sense of understanding how rural societies move, lack experience working at the community level with grassroots organizations. This limits our ability to understand rural population from their own perspectives, and limits the communities from understanding external organizations. We live in a world of one-eyed people that is attractive for any virus.

This separation or “fortress-effect” feeds the prevalence of beliefs. It is a universal truth that when there is less information and less articulate comprehension about certain habits, beliefs prevail. What beliefs? In peasant families: “If I believe in God, nothing is going to happen to me”, “lightening is not what kills you, it is just your time has come”; “long suffering people will resist any virus”; “I am not washing my hands because my hands are hot because of work”, “chloroquine and azithromycin get rid of the virus” (self-prescribing without evidence that it cures and without investigating its damaging effect on the heart; and according to the WHO seem to increase the risks and consequences of the disease). Beliefs in external institutions: “information confuses people”; “money makes the monkey dance”; “if the economy improves, all improves”; “give them alcohol and with that COVID-19 will not affect them”; “boil eucalyptus and cypress leaves”; “read the bible where it announces the end of the world”, “everyman for himself”. Doña Coronavirus laughs and is attracted by these beliefs!

We resist learning. We read about the 15 countries of the Asia-Pacific region, China, Korea, Taiwan, Hong Kong, Australia, New Zealand, Japan and the 10 member countries of ASEAN (Association of South East Asian Nations), Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam, as the region that has best dealt with COVID-19, a region that has 2 billion people of the 7.7 billion that exist in the world. How did they do it? With good public health: they closely observe the symptoms people have, if there are symptoms, they test them, if they are positive, they isolate them in their homes or in hospitals, and they do contact tracing[6]. In other words, the more they diagnose, they more they know what to do, and thus save more lives. In contrast, national and international organizations tend not to do diagnoses to formulate and implement policies, except to appear to formally comply; our mentality of providentialism and resignation resists learning from rural populations, we do not seek to understand them, we believe that we already know them, that “the market knows more”. We are societies that seem to live like in the middle ages under the church with the inquisition, in those times “there was no reason to think, it was enough to believe”, when thinking was a sin and punished by death.

2.    Hygiene in rural societies

What is it that we need to understand? We begin with some history, to then paint something about the rural reality and show the vein that we have to continue exploring.

There are several studies on diseases and the architecture of cities and homes[7], not much on rural spaces. Public health has contributed to the fact that the population lives longer, architecture has also done that. So closets were imposed instead of armoires, because they were anti-hygienic because they accumulated dust. In the last 150 years we know of great changes in the cities of London, Barcelona or Paris; in 1866 they cleaned up most of the river Thames in London, and that clean up saved most of the people of the city from the threat of cholera; in 1844 they redesigned the city of Barcelona, knocking down walls that contributed to the overcrowding, which made lack of hygiene worse and supported epidemics; also Paris was redesigned for health purposes. Other smaller changes also had large impacts: clean water and management of sewage to prevent malaria or yellow fever; in the face of the bubonic plague, that killed 12 million people between 1855 and 1959, they rebuilt homes with more concrete and metal to keep out the rats who carried that pestilence. In other words, the design of homes and cities for health purposes lengthened the lives of people.

Now with COVID-19 architecture is challenged to redesign homes. Even though architecture has not been able to respond to respiratory illnesses, COVID-19 can cause the redesign of the home, where the idea of what is private is reconceptualized, giving way to the home as a space for school, work, reflection and gymnasium[8].

Unfortunately, there are no studies about that same relationship between architecture and health for rural areas, at least none that I am aware of. In rural areas, hygiene has been in deficit for centuries, a situation that has been made even worse by the discrimination toward the rural world. This situation of hygiene is due in part to the fact that rural families every day are grappling with land, farming, agro-chemicals, small livestock, slaughtering or the fire in the kitchen, and they do it without having protective measures like gloves, boots or masks, partly because they are living with limited water or means of catching water, on large haciendas the patrons customarily do not provide protective equipment to their workers, and partly because they do not have access to information while beliefs lead them to not protect themselves.

This daily work of women with fire, or men with the land leads them to bathe less frequently. This is not necessarily, however, a lack of hygiene; in fact, many people during the winter in Europe and the Andean altiplano do not bathe very frequently. The difference is that peasant families think that after work a person should not touch water, it is an understanding about the combination of temperatures; so it is that after making tortillas they do not wash their hands, after weeding they do not bathe “because the body is hot”. Also the lack of water and minimal infrastructure has conditioned them to carry out certain practices; women gather dirty clothes to go to the river to wash them, they spend little water to wash dishes. Likewise, little access to information has an impact on daily life, for example, dishes are not washed with Clorox that could contain the salmonella bacteria, which tends to be found in food contaminated with animal feces. We mention these points to illustrate how difficult it could be the fact that, now with COVID-19, they have to wash their hands frequently and with soap, when customs and their natural (water) and economic conditions weigh in.

Most rural homes, particularly those of low-income people, have dirt floors and are closed structures with little ventilation. For example, it is known that Chagas disease, that “forgotten illness” because the pharmaceutical industries do not see it as profitable, mostly happens in homes with grass roofs and cracks in the clay walls where the insects that cause this disease tend to live[9]. Peasant homes are a prolongation of the farm, or the reverse, for example corn is stored inside the home or above the hearth, while the cats deal with stalking the rats who are after the corn…

These rural practices became customs, and those customs, laws, which tend not to be seen by  the eyes of State institutions, markets and international aid agencies. External actors, instead, tend to see agriculture or ecology as separate from hygiene in the home and family, and the economy as separate from health, education and religion. External actors, when they touch on the issue of hygiene, do so viewing the rural reality from the urban experience, and so any weed seems dirty to them, any home for them should be in towns or villages, any farm should be mono-cropped, and any insect should be fought with agro-chemicals. From the urban perspective it is hard to understand that a home on a farm probably is healthier than a city with an over-populated cattle industry, or chicken or turkey industry, which are true virus factories.

We need to scrutinize the relationship between hygiene and agriculture, home and farm and school and church to understand the culture of hygiene in rural populations, to then look at improvements and changes to be made. Without understanding, one cannot see, Rodrigo López told us, a peasant from Waslala. How true that is! Otherwise, how can we imagine that just using chlorox and alcohol is going to prevent COVID-19? Without understanding, how they can reflect on and change their habits coming from their own cultures and farming systems, any chlorox or alcohol that they are given runs the risk of ending up in the municipal markets, as has happened with the donation of tin roofing sheets, pure bred hogs, coffee roasters or grain silos. The community, that heterogeneous amalgam of disputed realities, is like a book, inside of which dance letters, pages and imagination, opened up only by the reading of those who love it, a reading which is like a person who shells a corncob sensing a hot tortilla with “”cuajada.

Our challenge is to rethink community spaces from a perspective in which health and economics are embedded in each other. Homes on farms with materials that protect them from rats and the insects that carry Chagas disease, and at the same time are ventilated spaces, and agro-forestry farms, in communities with spaces for food, reflection, social interaction, entertainment, open field school and collective actions. Communities with fresh air, revived, which end up being the “tree” to protect oneself from the virus. This is the vein to dig into.

3.    It is the moment for organized rural societies

While we study, let us not lose the pulse on COVID-19. What should we do? If classes and/or religious celebrations continue, and if markets and States do not show they are effective, grassroots organizations (cooperatives, associations, parent-teacher committees, water committees…), located in the communities, must act to protect their communities. The effectiveness of these organized rural societies can be better if supported by organized global societies (international aid organizations).

How? These grassroots organizations must turn themselves into entities that inform, connect with schools and churches to accompany them to understand the problem and their prevention practices in the face of COVID-19, and look up while they deepen their roots.

3.1  Informing yourself and analyzing the information

 

Box 1. Symptoms for diagnosis

Dry cough + sneezing = air pollution

Cough + mucus + sneezing + nasal secretions = common cold

Cough + mucus + sneezing + nasal secretions + body aches + weakness + mild fever = flu

Dry cough + sneezing + body aches + weakness + high fever + difficulty breathing = coronavirus

Source: Pathology Department, UCH London

In the first box are the elements to tell whether a person has coronavirus, flu, a cold or just air pollution. The scientific community reveals that a person with COVID-19 can show mild symptoms, and days later have other more serious symptoms. In other words, a person could have a cough and sneezing, and not have a high fever, which does not mean that they do not have COVID-19, in the days following the other symptoms may appear. Box 1 is a simple aid to differentiate, it does not assure you that you do not have COVID-19 with the first symptoms, but at the same time helps you to not get alarmed with the first symptoms, helps you to stay calm and discern; this is a big help in rural areas where it is difficult to go to a hospital.

COVID-19 is not just a new virus, but the scientific community still does not know much about it. Current evidence reveals that a little more than 40% of people with the virus were infected by people who did not have symptoms of COVID-19. This obviously makes prevention difficult, at the same time, knowing this helps us to get a grip on the problem and respond in the best way possible[10].

 

Box 2. Recommendations

1.     Do not touch your face–because the virus enters through the mouth, nose and eyes

2.     Wash your hands with soap – the virus is dissolved with 20 seconds of hand washing.

3.     Maintain physical distancing (1.5 mts) from another person; avoid groups of people

4.     If you do not feel well, stay home. The family can help you determine whether it is coronavirus (see box 1)

5.     Avoid meetings in closed spaces without ventilation

6.     Above all, think, think, and think–it is the most vital thing that we should practice.

Box 2 has information also based on studies. Grassroots organizations can disseminate it in their communities, but first they should read and analyze it: why shouldn´t you touch your face? Why should you wash your hands with soap? Why maintain a distance of 1.5 meters with other people? Why should you stay home when you have a cough, mucus and sneezing?  The more we think about it, the more we understand it, the more we are going to put it into practice and tell other people. Talking through information allows us to think about reorganizing activities, for example, the measure of maintaining a physical distance of 1.5 meters can help so that in a religious celebration, a meeting in the cooperative, or a class in the school people take their seats maintaining that distancing, so that the meetings be for shorter periods of time or with frequent recesses, or so that the meetings might be better prepared in advance so that, like chickens, you go straight to the “grain.” Information that is thought through can save lives.

Grassroots organizations also should reflect on other contributions from scientists. Let us look at 3 contributions. The first, studies show that children under the age of 12 do not get infected much, compared to adults; in the cases when they are infected, they almost never get seriously sick, nor are they great transmitters of the virus, like they were in the case of the flu, because the amount of receptors that COVID-19 needs are less in children under the age of 12, and consequently the viral charge (in other words, the amount of the virus that they can gather) is much smaller[11]. Statistics confirm this statement, minors under 12 are less than 0.2% of COVID-19 deaths.

Second, statistics how that men become more infected by COVID-19 than women, and they tend to suffer more from the virus than women who are affected. This is due to the fact that “the blood of men has higher concentrations of the converter enzyme of angiotensin II (ACE2) than the blood of women (…). This receptor is found on the surface of healthy cells, and helps coronavirus infect them” (see: https://www.iprofesional.com/actualidad/315900-coronavirus-por-que-hombres-se-contagian-mas-que-mujeres ). Active genes linked to the X chromosome provide women (XX) greater protection against coronavirus than men”. In addition, be it for the type work in which rural women are more involved, in general they have more hygienic habits than men, for example, they wash their hands more frequently, be it because they are washing dishes, clothing or for personal care. This indicate the importance of hand washing.

Third, studies also tell us that the use of masks is preventive, but they also warn us of the risk of reusing them, because they can become a means of infection, because the virus can remain for hours and even days in the masks. The masks are more for infected people, with or without symptoms, so they do not infect other people. Why the masks? Because they reduce the particles that come out of the mouth when a person breathes or talks. When should masks be used? They can use them in school during classes in closed classrooms with little ventilation, in relatively closed churches during celebrations, when it is not possible to maintain physical distancing, when the interaction lasts a certain length of time, in places with human crowding (banks, markets…). They should also be used when you travel to town, on returning home you should wash it, in this way the mask will be ready for a new outing or meeting. Countries that have overcome COVID-19 have used the masks as part of their strategies, which is why rural communities probably will have to introduce the use of masks as part of their culture of care, particularly for the moments we just pointed out.

3.2  Linking to and contacting schools and churches

It seems easy to connect to and assume that any organization or institution will be happy to be contacted. Nevertheless, churches, schools and party structures are not accustomed to coordinate with community organizations, except to “orient them” about what to do, and treat them as their dependents. Their worlds and leadership which we mentioned previously really carry weight, they are true walls to community coordination. How is a grassroots cooperative going to react if the pastor of a church tells them, “God is our doctor, we trust in God?”[12] What is it going to say and do if the principal of a school tells them, “we can only receive support if it comes through the ministry of education”? What are they doing to do if a committee of a political party, the councils or mayor deputies say that “directions and projects only come from above?”. What can you say to the parent of a family who only believes in the patron of their hacienda? How difficult it is to be community and work for the community! There, where things get complicated, money will not even make monkeys dance.

In the midst of these worlds we have learned the following steps. First, discussing the information in figures 1 and 2 really empowers people, it is in-forming, and informing is forming. Information can be an antidote to despotic religious, political and economic leaders. Second, the cooperative or association should start from what it is and has; what do they have and who are they? Each member has, at least, a family member who is a student, believer of some religion and/or is member of a political party; they should talk with them, discuss the COVID-19 situation, and the information provided here. Third, members of the organs of the cooperatives, having now conversed at the grassroots level, visit the parent/teachers committee of the school, people with positions in the churches, (e.g. deacons, delegates of the word) and party members or government authorities, reflect with them and discuss the information. Finally, the board members of cooperatives communicate with the parent/teacher committee of the school and with deacons and delegates of the word[13]. In other words, connect with the grassroots of different organizations and institutions, their intermediate leaders, to then connect with the leadership of the organizations and institutions. In these steps, it is not a matter of convincing anyone, but of listening, bringing together elements that help to understand, and once each person understands, they will be able to see and then act – it is like preparing the soil and planting a seed, then you have to let the seed germinate and struggle to grow[14].

 

Table. Cost of kit for 90 people (1 month; in US dollars)

Products Quantity Price Total cost
Chlorox (cleaning equipment) (liters) 4 2.94 11.76
Hand towel (units) 6 2.35 14.1
Bar of soap (units) 90 0.51 45.9
Gel-Alcohol (liters) 2 5.15 10.3
Re-usable masks (units) 180 0.74 133.2
Instruction sheets 90 0.09 7.94
Total 223.20

With these steps, each organization can supply  itself with a kit of hygiene products to prevent COVID-19 (see table). Cooperatives have a social fund that they can use to acquire the kit, unless they have used it for other social agendas that they tend to have. Schools can, through the parent/teachers committees, gather resources to acquire the kit. If the cooperatives, with or without international support, can gather resources to support the schools and churches, it could make a difference, strengthening the bonds in the community, and the entire community would benefit. The more bonds there are, the more autonomous the community will be.

3.3  Looking forward

 

The sixth recommendation in Figure 2 is the most important reason for a grassroots organization rooted in the community to exist: think, think and think. Thinking is the most important element to resisting COVID-19. Thinking is looking forward and seeing beyond our noses. A cooperative is not a church nor a political party, its members are there voluntarily, they are not subordinated to anyone, they discuss and reach agreements in their assemblies, which is why they must examine their beliefs and fight with and against them. Individually they can believe or not in God, but they should not expect God to send them angels or saints to wash their hands for them, or put their masks on, just as they would not expect that he plant beans for them or remove botflies from their cattle; they can believe in their political leaders, but it is shameful to subordinate themselves to anyone. As cooperative members they have free will, their source of power is the assembly composed of the members themselves, and their reason for being is thinking, thinking and thinking in favor of their communities.

Part of this thinking is reflecting about COVID-19: How to protect their own community? If the State does not show up in a community, the cooperative must also take on that role. If the health system capacity is overcome, grassroots organizations should discuss how to help prevent the outbreak in their communities, and how to help people who might be affected by the virus. If in any country COVID-19 is being controlled, in all countries there are waves of outbreaks of the disease, so the cooperative should keep looking for those possible outbreaks. In Central America the urban waves of COVID-19 are still ongoing, which is why the rural waves that come later, can be lethal, not just for the reasons mentioned in this article, but because we are in the midst of the rainy season, which will make it more difficult for infected people to get to a health center or any support. If a community receives external support, the cooperative must be careful that that support not be counterproductive, because there can be support that displaces grassroots organizations, and when that donation ends the community´s own autonomy and their own efforts can be left eroded.

Cooperatives need to organize how a network of women can sew masks, how to make soap with lard, how to recover old ways of making alcohol in order to use on hands, how to recover natural medicine… Cooperatives need to think about connecting hygiene, economics, social and environmental elements, thinking about the food in the community beyond COVID-19, thinking about environmental sustainability with pure air and water, thinking, thinking, thinking.

4.    Role of international organizations in living communities

Even though for multiple reasons most of the international aid organizations have withdrawn from Central America, there are still international organization that are supporting the region. There also is the fair-trade network, as well as local-global networks among national and international organizations, unions, churches, social banks and universities in the world. When there is the will, there is the way, as the saying goes. If each person feels a mission of service, we can deepen those relationships of collaboration and reactivate “dead” relationships, because “where there are ashes, there was fire.” Each person and organization can play an important role if in this COVID-19 context they realize the importance of working on the community level that is organizing: what good does it do to provide individualized credit or training, as neoliberalism does, promoting mono-cropping, environmental degradation and the erosion of communities? The current situation wakes us up: people who organize and follow rules agreed upon in their assemblies, instead of gurus or chiefs who see themselves as the law, are those who really energize their communities, sustainable farming systems and contribute to social and environmental equity. Communities save communities.

Within this framework, what role do aid organizations have? Traditional donations, involving donating and awaiting reports invented by organizations “confined” to the cities, can be counterproductive, particularly if they displace the efforts of the communities themselves, which in the long term would undermine communities. Aid organizations need to connect with counterparts[15] who really are working with grassroots organizations that meet the following criteria: they are democratic, redistribute their surplus, are transparent with their information and are rooted in their communities or specific micro-territories. This type of organization will persist in the communities, while other external organizations, or those with disperse membership, will continue treating the communities like their lovers, showing up from time to time and leaving. Forming alliances with grassroots organizations so that a donation might provide an initial push, for example, with what is indicated in the table, supporting wash basins in schools with access to water, or working on agro-forestry systems that would protect water sources, where grassroots organizations might accompany their communities, and that their national partners might accompany them in the communities themselves, being careful, but overcoming fear, is the network which need to be built now and always.[16] The dilemma is not whether to leave your urban home or a rural farm; it is how we strengthen internal community assets, how we can take advantage of this “momentum” that exists in global awareness as an effect of COVID-19 to see the importance of communities. In this way, external financing to build a community response would decisively help the community deal with the virus and its new outbreaks, and help in the long term to democratize the community itself.

5.    By way of conclusion

In this article we showed the risks of COVID-19, we have begun a reflection on the relationship between hygiene, the economy and social factors, we described the strength of communities if they build lasting connections, we have emphasized the role of grassroots organizations to reflect on their values and principles in light of what is happening in their communities, and generate ways to cooperate in the prevention of COVID-19, and to innovate in ways of accompanying their communities in the midst of the uncertainty. We showed that, through these short term measures, and starting from an analysis of the processes which we are experiencing, it is possible to look forward to the medium and long term: to improve, correct, and generate habits of hygiene connecting home, farm and nature, and home, school, health center and community building.

The impact of what we are proposing, nevertheless, will be seen above all on more structural issues. For example, an exponential increase is coming of people in extreme poverty, the goal of eliminating extreme global poverty for 2030 is going to be only left on paper. The crisis for rich families of the world is how to have less desert options in their dinner, while for our communities the crisis means that they might miss a meal or face empty plates, becoming vulnerable again to any disease. This article and the previous one on basic grains aim at preventing those impacts.

The current situation also provides us with opportunities, because “behind every adversity there is an opportunity”. What opportunity? Mitigation of climate change which, in the case of rural communities, means water, land with life, biodiversity; it is the moment to rethink farming systems and intensify more sustainable forms and farming systems that stop the loss of nutrients in food because of the decreasing quality of the soil. It is the time for communities, never before has the importance been so clear of investing in communities who organize and embrace a culture of care; now is the hour for life, amen.

To look at these structural issues we must understand that it is not the economy that solves health care, it is not a matter of knowing whether the chicken or the egg is first, now the economy is public health and community health; and health, the economy, social and environmental reality are like a mountain slope, if you are on the higher part it looks different than seeing it from below, if you are on the very top, it looks different from one side than from the other, but it is the same slope, the same mountain slope.

 

“Think, Pipita, your love for others is stronger than anything else…Besides, the rain is coming!”

 

[1] The author has a PhD in development studies, is a collaborator of the Winds of Peace Foundation (http://peacewinds.org/research/), associate researcher of the IOB-Antwerp University (Belgium) and member of the Coserpross cooperative (http://coserpross.org/es/home/). rmvidaurre@gmail.com We are grateful to J. Bastiaensen and M. Lester for their suggestions to the draft of this article.

[2] T. McCoy and H. Traiano, in The Washinton Post, write that in developing countries the advantage of being young is being annulled: in Brazil 15% of those deceased because of COVID-19 are under 50 years of age, which is 10 times more than in Spain or Italy. In Mexico it is 24%, India 50% are under 60. Why? Probably: many people have to continue working to survive; in addition to dealing with the diseases of the region (malaria, dengue, tuberculosis) they also are dealing with diseases of the wealthy countries: diabetes, obesity, hypertension…See: https://www.washingtonpost.com/es/tablet/2020/05/24/en-los-paises-en-vias-de-desarrollo-el-coronavirus-esta-matando-muchos-mas-jovenes/?fbclid=IwAR3ShYUOPzWytA6i7e7HJC3jfKlVtrgSHPyunHnxYYyU7fup1Lvt2Mq7SsQ

[3] It is likely that air pollution facilitates the virus and makes its impact worse, which in part would explain why countries in Europe have had high mortality, measured by the indicator of “over-deaths” or “over-mortality” (number of deaths above the average deaths from previous years) as an effect of COVID-19.

[4] Many people even with clear signs of having been infected, decide not to go to the health centers or hospitals. Why? “They say the hospitals have no room”, “I don´t want to die intubated”, “I want my family to wake me” and “we want to now where he is going to be buried to be able to go to pray for him”. The express burials frighten the population.

[5] Interesting exceptions tend to be organizations like Aldea Global (https://aglobal.org.ni/) or Addac (http://www.addac.org.ni/) in Nicaragua, whose staff tend to be located in the rural municipalities themselves.

[6] See interview of Jeffrey Sachs, by G. Lissardy, en: BBC News Mundo, Nueva York, 15 mayo 2020. Ver: https://www.bbc.com/mundo/noticias-internacional-52672591?fbclid=IwAR0ztSK3QLNSkZjj_2rq5Tco9-_vCXphrgRrWSEnveQQYZIYG9-fPsJhdH0

[7] L. Engelmann, J. Henderson and Ch. Lynteris (eds), 2018, Plague and the City. Londron: Routledge. They study the relationship between plagues and measures to fight plagues and cities from the middle ages up to the modern era; they also include cities like Buenos Aires.

[8] D. Ventura, May 10, 2020, “Coronavirus: how pandemic changed architecture and what will change in our cities after covid-19” in: BBC News Mundo. See: https://www.bbc.com/mundo/noticias-52314537?fbclid=IwAR3LCBRj1yh_wEVsG_oMr-HdlD9C2f8AtR_hgG3dCpQkJaPMT_SrbNq3yuA

[9] Inspired in these realities and by actions of Dr. Mazza and his team, in 1995 they filmed the movie Casas de Fuego. See: https://www.youtube.com/watch?v=A6yWNBytu3U The movie illustrates the relationship between disease-insects, homes (shacks) and social inequality, the wealthy class is against homes being rebuilt, because “they are not concerned” about the millions of poor people.

[10] To help with reading about this point, see: https://espanol.cdc.gov/coronavirus/2019-ncov/prevent-getting-sick/prevention.html

[11] We are not saying that they do not get infected nor that they do not transmit. We are saying that they do not get infected MUCH and therefore, even though they can be infected, they are not big transmitters – in comparison with other ages. About those studies, see: https://www.vox.com/2020/5/2/21241636/coronavirus-children-kids-spread-transmit-switzerland

[12]The movie Casas de Fuego (footnote No. 5) illustrates the duality science/faith and committed science/academic science. The priest is opposed to science benefitting the most impoverished and affected communities; for him “faith and science are fighting over the same people”; a Manichean dilemma that smacks of the middle ages and that did a lot of damage to humanity. Also in this movie, that captures a good part of that experience, the University blocks the mission of Dr. Mazza and his team; fortunately Dr. Mazza and his team persist, their commitment is worth more than restrictive science, a commitment that nevertheless, they paid for with their lives, caused by the Chagas disease itself.

[13] If there are other organizations in the community, like alcoholics anonymous, water or road committees, the same is done as with the schools and churches.

[14] Note that traditional organizations tend to do just the opposite: the meet first and only with the leadership of the organizations, and then send technicians to “train” (in other words, convince).

[15] If some national or international organization wants to provide support under this spirit, they can contact the Coserpross cooperative (http://coserpross.org/es/home/) in Nicaragua, the Comal Network in Honduras (http://www.redcomal.org.hn/). Coserpross and the Comal Network accompany dozens of grassroots organizations in the region, synthesize verified information to provide to the grassroots organizations, and move about in those same territories. There are also organizations like Aldea Global and ADDAC that we mentioned in footnote 5; their uniqueness is that their network is present in dozens of communities.

[16] What would happen if a bee stayed in its hive? It could live as long as the food that it stored lasted, the honey that it produced, and then? We must understand that we, flowers, bees and humans, are all one network. The bee leaves its hive and goes from flower to flower, pollinizes, does it at the risk of losing themselves and of losing their lives. So is the network. So are we accompaniers, taking on the corresponding measures (use of mask and frequent hand washing), we should not “pass by on the other side” like the priest and Levite in the parable of the Good Samaritan, we should be inspired by people like Chagas and Mazza did and their teams in Brazil and Argentine that the movie Casas de Fuego portrays.

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/

May: The Power of Communities

May: The Power of Communities

René Mendoza Vidaurre

 

We were waiting for you like the “rain showers of May”,said the girls as they hugged their grandparents.

The fifth month of the year is called “May” in honor of Maya, one of the seven daughters of Atlas and Pleione from Greek mythology; “Maia”, goddess of abundance. People who dig into history also tell us that it was a month for the elderly, the word “elderly” in Latin is “maiorum”. In Central America May means the first rains of the year, with which agriculture begins and all the pallid landscape of April turns green and pulses with life; the popular expression is “the rain showers of May”, the month most anticipated. This article is about the power of community, that when we discover it is like the month of May: abundant, living, ever changing and very much anticipated.

Those who live in a village or hamlet watch the movement of people. They see the buyers come in to buy coffee, beans, or agoutis; for the buyers the community is a place to buy things. They see people who have diplomas arrive, and board members of organizations, they greet them from the road, they estimate the harvest, fill out paperwork, and leave promises; for them the community is a stone paved road. They see people arrive in cassocks, lab coats, or wearing glasses, who enter the church, school or health center; for them, the community is a bunch of cement blocks with tin roof sheeting, and people who applaud them.

Among those people who are watching, Elder Lagos, from the community of San Antonio, observes, “The cooperatives collect the coffee harvest in the towns, while the buyers collect it here.” Rodrigo López from the community of Ocote Tuma, also observes, “There are two cooperatives with members from here, these cooperatives are in the town; they never meet here.” These observations awaken three, five, ten, up to thirty people, who form cooperatives, meet, collect the coffee harvest, and pay for it in the community itself, they save the people the cost of transportation of having to take their coffee to town. Others, with their fingernails and the friendship of their neighbors, buy cacao to dry it in the community itself, and pool their cents together to start a chicken farm. “The cents that it costs us make it more savory”, concludes Doña Justina Meneces.

There were good times when growing just coffee, cacao or cattle people bought their vehicles, they took on positions and went to live in town. But at the same time, their water sources dried up, the land grew tired, and the prices of those products dropped, and the price of agro-chemicals rose. Daniel Meneces remembers the words of his uncle Toño, “A lot of people are like the dog who barks at the squirrel believing that it is in the tree, when the squirrel has already left.” Betting on only one crop is like barking at the tree, when “the squirrel has already left.” People like Daniel become aware of this reality, three more do, then ten more…they turn their attention to the land, water, and processing foodstuffs: making bread, honey…The land is valuable and worth more than money!

“We are at different steps on the ladder,” said Claudio Hernández from Samarkanda, recognizing the inequality in the communities. That is why, in the face of the law of “exporting the best and leaving the worst”, they are roasting coffee in the communities; in the face of the rule that “organization and projects come in from outside,” they are talking among themselves, so that the community might have water; in the face of the wealthy who say that “people are only moved by money”, they visit one another, and the mutual affection that they cultivate moves them more. So, the community stores are saying, “I am going to give you products on credit that you share with your family” – products like beans or oil, but not cigarettes. This spirit is like the spirit of the first time one falls in love.

The power of communities is like “rain showers in May”, which causes good changes to bloom.

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.

Equitable distribution of surplus in cooperatives

Equitable distribution of surplus in cooperatives

René Mendoza Vidaurre[1]

Paying back is improving

The revolution and the agrarian reform came, people knew the word and their eyes were opened, many organized into cooperatives and received land, seed and technology, and they said “we are in power.” Within years they sold the land and forgot even the word. They received it, and lost it.

A woman received a cow and in months paid for it with a calf, which was given to another family. She understood that the cow pays for itself, she felt that she paid back, and made an effort along with other families. Paying back is improving.

(Based on a conversation with Gregorio Solórzano, Municipality of Cinco Pinos, Chinandega, Nicaragua)

This parable recalls the historic rules of indigenous and peasant communities. If the action of “giving” is connected with “paying back”, like the woman with the cow and the calf, their lives improve. While “receiving” unilaterally, without “paying back” to the community, creates a false world (“we are in power”) where people are left worse off (“without land and power”). The paradox is that “paying back” is not losing, it is gaining: it makes the person “make an effort” within a collective framework and community space.

That collective framework constitutes the paradoxical difference. In the case of the woman who received a cow and paid back with a calf, an arrangement (agreement, rule) underlies which she fulfills, an arrangement that is connected to a virtuous millennial indigenous institution, “giving-receiving-paying back”[2]. In the case of the beneficiaries of land on the part of the government, a damaging arrangement  underlies it, subordinating oneself and depending on the government, something that leads them to be connected to another historical institution, this time a counterproductive institution, “easy come, easy go”; people lose and the government loses. The gaze of the woman is toward the community, while the gaze of the people in the cooperative is directed outside the community.

Giving-receiving-paying back is growing in collective spaces mediated by rules that are connected with virtuous endogenous institutions of the people themselves. Within this framework, how can distributing (“paying back”) in the cooperatives be the key for growing with equity? Perhaps diminishing is growing?

In this article we study these questions in light of the cooperatives, even though it can be generalized to associations, associative enterprises or NGOS with initiatives under the framework of the social and solidarity economy. We start conceptualizing distribution as a different idea from the neoliberal economy, where the market is the great distributer. Then we look at five ways for the distribution of surpluses: legal reserve, cooperative reinvestment, social-educational fund, direct resources to members, and retribution by way of a member´s rights.  Then we work on how to carry them out. We conclude reconceptualizing equitable distribution as a cooperative concept and one from the social and solidarity economy, that goes along with the democratization of cooperatives, and connected to endogenous institutions of the peasantry.

1.    Distribution rules and policies

In capitalism “the invisible hand” attracts resources and distributes them with inequality, in dependence on the financial power of the actors, their connections, the support of the State for elites (e.g the policy of low taxes for mono-cropping enterprises), and guided by the rule “even the monkey dances for money”. The mediation network captures the resources and returns them as money that buys new products (and labor), mediated by institutions that worsen that inequality: usury, future purchases (crop lien system) and indebtedness. The capitalist, be it merchant, banker or industrialist, is the absolute owner of the surplus.

Polanyi (1976)[3], in an anthropological study, worked on the idea of reciprocity, distribution and interchange. For the topic that concerns us he says: “distribution designates the movements of ownership toward a center and then toward the exterior”, and added, “distribution depends on the presence to some extent of centrality in the grouping”” (1976:7). Santana (2014: 91)[4], rereading Polanyi, indicates that “what is unique here is that there must be trust and loyalty to be able to group the assets in that centrality, knowing that later it is going to be returned in an equitable way.” Let us reread both authors: resources come toward a center, let us say toward a cooperative (like taxes to the State), from there is “goes outside” of the cooperative, to the members in an equitable way. For those “movements of ownership” to happen, there has to be “centrality in the grouping”, which is possible if there is “trust and loyalty”. Without trust and loyalty, there is no “movement.” When is there trust and loyalty that takes resources to the cooperatives and makes them be  “paid back”? Our argument: there is trust and loyalty when the rules of the cooperative, connected to endogenous virtuous institutions, guide the cooperative from its beginnings with a societal and communitarian perspective. In other words, the cooperative, from and for the communities, is responsible for the distribution with equity.

Cooperatives currently, nevertheless, are formed and achieve a partial “movement”: they attract resources from dozens of their members, but it is difficult for them to “pay back” the surplus and pay them back in an equitable way. There is the challenge. For that reason, there are written rules. What are they?

Cooperatives include in their statutes, following the laws of each country, the distribution of profits[5]. Cooperatives include a percentage (%) for legal reserve, % for the social or educational fund, % for distribution among the members according to their contributions or economic transactions in the cooperative – note that improvement in the price of the raw materials is not mentioned as “distribution of surplus”, because it is not, the surplus is calculated after the annual financial year. This is consistent with the principles of historic cooperativism: among the Rochdale principles of 1844 is the “payback of surplus”, then  in 1966 the International Cooperative Alliance (ICA) reformed those principles and replaced it with “the surplus belong to the members”, and finally in another reform in 1995 the ICA said “the economic participation of the members”; in all of them the spirit of the distribution of surplus is maintained. These rules can be connected to the virtuous institutions of agrarian societies, giving-receiving-paying back, the gift that Mauss (1979) described.

Consistent with this cooperative and communitarian principle, the International Fair Trade Movement (FLO), begun in the 1980s and 1990s, in their policy of offering better prices to products coming from families that are organized, included a “fair trade premium”, which in the case of coffee, for example, is US$0.20/lb., a fund so that the members of a cooperative might decide to use it in educational, health projects, and farm improvements or investment in processing installations. Other buyers tend to include also a “cooperative premium”, a fund that the members might decide to use for collective investments that would benefit everyone.

In addition to rules, cooperatives have mechanisms for complying with them. They have their oversight board, the assembly, the education committee, there is also the administration with accounting that issues financial reports. In some countries the State has a role of comptroller of the cooperatives. The international fair trade organizations include their FLO certifier that audits the use of the Fair Trade premium and the democratic processes of the cooperative; social banks require financial statements and balance statements; aid agencies ask for audited reports and evaluate the projects that they finance, and in some exceptional cases withdraw their support when the cooperative fails to fulfill their rules for equitable distribution[6]; likewise some companies that buy coffee or cacao[7].

Having gotten to this point, what do we observe? In spite of having rules and mechanisms for distribution, it is rare the cooperative whose members participate in the decisions on the use of the social fund, reinvestment fund, or on the cooperative premium; it is rare the cooperative that is transparent with its members on the use of these funds; and it is rate the international aid agency or buyer who ensures this transparency, and that the surplus be distributed. In other words, the rules of the cooperative and the organizations are systematically not met; consequently, there is no confidence nor loyalty, which is why the “movement” is in only one direction: the resources from the members go to the cooperative and then to the companies (fair trade, direct trade, or independents), who do not “pay back” the surplus to the members. The rules of the cooperative and the organizations do not end up connecting to the virtuous endogenous rules.

2.    What opposes the distribution of the surplus

Even having rules and mechanisms, why do  cooperatives not distribute their surplus? It seems a matter of adding and subtracting, of knowing rules, signing and complying with agreements; it is not a technocratic matter, that a “scholarly” person might resolve; it implies adding and subtracting, showing the strength of the old anti-cooperative model, and of perceiving their own attitudes. Here we start with three interconnected responses, of the several that exist. See Figure 1.

First, the “business foot” of the cooperative, and organizations-international enterprises coincide in the fact that the business (sale-purchase of the product, disbursement-payment of the loan and execution of the project) works, not so much that the cooperative works.

They are content with the protocol, written and legal proof about the functioning of the cooperatives, proof that the elites of the cooperative learn to quickly fabricate: minutes that prove that the organs meet, audits with authorized signatures, financial and narrative reports including registry of data, and even members “trained” to repeat what the organizations want to hear, when some organizations visit. This practice, in turn, is read by the members as something that confirms their ideas that the cooperative does not change at all their way of working and selling their products: “If the organizations says that it is fine, surely it is fine, as we have always worked.” This is the formal structure that covers over the fact that the cooperative does not distribute its surpluses in accordance with its own rules, and the millennial aspiration of indigenous and peasant families.

“The peasant is interested in selling his product, he is not interested in whether there are surpluses”. This phrase presidents and managers of cooperatives repeat, along with buyers and international aid agencies, as well as technicians and boards of NGOs. This phrase underlies century old institutional practices. What are they? It is the institutionalized idea in the hacienda owner or the capitalist, that they have the exclusive rights to surpluses, that the peasantry were born to sell their labor and/or their raw materials. It is the same idea that the peasantry reproduces: “My country ends with my fence of piñuelas”, says the peasant family; “they pay my wage, that is all I ask”, says the working person (field-hand or peon); they never ask themselves about the surplus that their work or their product generates, they take it as given that it is not theirs. That institutionality absorbed the cooperatives and made them forget about the reason for their origins and their rules for distribution, and with that buried even more that indigenous-peasant right to the value that their work creates. So it is that the members demand that they increase the price of their sun-dried coffee, cacao pulp or their sugar cane; in some cases they demand an “adjustment”; “if we got credit as a cooperative so that you pay us a certain price for coffee, and if you paid us as the market price a little less than that set price, then pay us the adjustment”; no one demands their surplus; the presidents and managers behave like the hacienda owner or capitalist.  Figure 2 illustrates this institutionality: the worker reaches the wall of their days wage, the peasant their fence of piñuelas, the “business foot” of the cooperative goes as far as the “wall” of the port, and the buyers-roasters-distributors to the sale or even the cafeteria. Each one, and in each wall, seem to follow the rule of “I don´t touch you, and you don´t touch me.”

Second, the organs of the cooperatives are left bound up, because their rules are replaced by others that respond to what Polanyi (2001)[8] called the “market society”, and respond to colonial and patriarchal structures. One of those rules is: “To distribute, first you have to grow.” This rule comes from neoliberalism, that “economic growth is development”, from trickle-down economics: capturing the wealth of the members so that the cooperative might invest and accumulate in the short term, and benefit the members in the long term. This “development” and that “long term” with “benefits”, nevertheless, tends not to arrive; in other words, “they do not pay back”. Consistent with neoliberalism, the cooperatives assume that “distributing decapitalizes the organization” and they embark on the path of the “big headed dwarf”, whose head is large and is made of steel (concentration of physical investments and resources), and whose feet are clay (impoverished members who do not participate in the decisions of their organizations nor rotate offices). In this logic the managerial staff or the president tend to end up feeling themselves to be the true owners of the resources of the cooperative, that it is “their effort”, while the board members tend to abandon the volunteer nature that their offices imply, and seek any gap to take advantage individually, be it through travel allowances, loans on top of loans, or benefitting themselves from the donations that the cooperatives eventually might receive. Also consistent with neoliberalism, the fair trade and direct trade bodies reduce their relations with the cooperatives to just the financial aspect, and treat the cooperatives as just “businesses”.

Distribution, expressed in colonial rules, says to the members: “We always need a patron.” The field-hand depends on the patron, who “provides” for him (future purchase of his labor), like the peasant depends on the trader who “provides” for him (future purchase of his product). For them, this “providing for” is the best “distribution”; they know no other. This is what penetrates into the cooperative where the members confirm naturally that they never had rights to the surplus.

Distribution is also expressed in the heart of the family. There, the patriarchal rule says, “The father decides to leave the inheritance to the eldest son, and that will be carried out when he dies.” That will is conceived as something sacred. The family is an institution that attracts resources because of the family labor of its members, and in the end “pays back” (inherits) in an unequal way, leaving tacit that that older son is going to distribute the inheritance among his brothers and sisters, and what happens? Not always, but generally, that older son takes over the inheritance, or sells it and squanders it. That family institution also penetrates into the cooperative, where many times the person who occupies the presidency or management is seen like that “eldest son”, while the rest of the members are submitted to his will, in spite of the fact that they are the “parents” (owners of the cooperative) of that “eldest son.”

The cooperative, guided under this capitalist, colonial and patriarchal spell, tends to start with enthusiasm and when it capitalizes, the board members or the administrative staff turn into elites, exclude those who question them, and privatize the cooperatives. Thus, W. Berrios, from the CAFOD aid agency, observes, “In my years of work in Central America I have seen that it is in the maturation curve that the cooperatives go broke.” Infrequently they restructure the cooperative into a private enterprise, but many times they make it function as a private enterprise sheltered under the legal status of a cooperative, or under the discursive mantle of the social and solidarity economy.  In both cases the members are treated as simple sellers of raw materials.

Finally, there is dovetailing between the mentality of international organizations (buyers, banking institutions, certifiers and aid agencies) and that of the members. The international organizations turn a blind eye to the lack of compliance with the rule of distribution, because, following Streeck (2019), “the policy of distribution only function in nations; in world society there are donations,” global governance “is not democratic”, because “above the nation-state there is only the “international free market”, which consists in large enterprises that are free to do whatever they want.” That mentality leads them to have a mentality of turning a blind eye to distribution, which coincides with the mentality of the members, who have never had access to surpluses, they always saw them as something that belonged to the patron or intermediary, from there it is that the members also turn a blind eye to their right that they be “paid back” (distribute) the surplus. This is what Figure 2 expresses with the walls, “I don´t touch you and you don´t touch me.”

3.    Distribution of the surplus (“paying back”)

How can cooperatives unbind this adverse triangle and distribute the surplus? By distribution people tend to fall into two beliefs: that it is “distributing financial surpluses” and that it is “distributing all the surplus to the members.” From here comes the idea that “distributing is decapitalizing.” In this section we break down what equitable distribution of surplus is, expanding the content of the distribution already described in the rules of cooperatives.

Let us start with the attached graph. This illustrates the components of this “paying back” that include collective forms (legal reserve, reinvestment fund and social fund), and the individual forms that the members receive directly (distribution to members and payments when they leave the cooperative). The percentages in the graph are arbitrary estimates, they vary depending on the laws in each country, and the decisions of the cooperatives agreed upon in their statutes.

Note that this graph breaks with the belief that “distributing decapitalizes”: the reinvestment fund refers to the fact that their own fund or their own “capital” grows in accordance with the percentage approved in the cooperative. The assumption in the graph is that exercising distribution in the five ways, combination of collective-community and individual distribution, builds trust and loyalty, which makes the members turn in their products to their organizations in larger amounts and with better quality; from here distribution instead allows the economic transactions of the cooperative to increase, and therefore the entirety of their funds grow; in other words, ”decreasing” (paying back or distributing) is “growing” in resources. The graph also shows the underlying reason for cooperativism, that it is not to accumulate just to accumulate capital, the cooperative is a means, and the members and their communities are the end (final objective). We break down these funds in what follows, including some important remarks.

3.1  Components of collective distribution

Let us describe those funds that are in the statutes, let us clarify and add what they can have which is unique. “Legal reserves” is to cover losses that eventually the cooperative might have during the year in the economic fiscal year; it is a financial cushion that prevents the cooperatives from going broke. In the case that there are no losses, that reserve could swell the investment fund, or, for example, cover legal paperwork expenses, the opening or updating of bank accounts, the legal defense of the cooperative in the face of lawsuits from third parties, the legal defense of the members in cases that affect the cooperative, or to have legal counsel in the face of certain situations or issues.

“Cooperative fund” or “reinvestment fund”, belongs to the cooperative. In addition, some buyers tend to increase the price of the product that they buy with a “cooperative premium” or with an “infrastructure fund”, resources that are added to the funds of the cooperative. These funds are to buy equipment that the cooperative might need, repair or enlarge the infrastructure (building, harvest collection center) of the cooperative, and/or to increase the funds of the cooperative itself, which would increase the loan portfolio, or would pre-finance the payment that the members make on receiving products, while they process and sell them – avoiding the need to seek outside credit.

“Social or educational fund”. It is a fund from the rules of the cooperative itself, and is a fund that increases if the cooperative sells its product through fair trade organizations or buyers that condition a certain amount for a social fund. In general, cooperatives use it to finance some demand of the community school, provide backpacks to the children, provide support to the local sports team, or for trainings that their education committee might organize. Even though these initiatives are praiseworthy, physical investment in the school is the obligation of the State for which society pays taxes. The sports teams are going to function with or without the support of the cooperative, the children will go to school with an old or new backpack. Some innovative cooperatives use that fund under the following criteria: invest in something that generates value for the community, that is not the role of another institution, and doing so as a long-term investment. An example of this is the fact that two or three cooperatives from the same community might invest in libraries for children under 7 years of age, story books that their families might borrow to read to them before going to sleep, promoting reading in the family itself, and that the cooperative might organize reading circles with the support of people who promote reading; the long-term impact of this initiative in the creativity and cooperative spirit of the community can be significant.

3.2  Components of individual distributions

Following graph 1, 50% of the surplus of the cooperative is distributed to its members directly. The criteria for that varies from cooperative to cooperative, and depends on the services that they offer. In some cases, it is in accordance with the contributions of each member. In other cases, it is in accordance with the volume of product transacted with the cooperatives that collect the harvest and sell the product of its members. In other cases, it is in accordance with the quantity of products bought in their cooperative. And in other cases, it depends on the amount saved in their cooperative. There are cooperatives with similar services, and that “pay back” under different criteria; for example, the peasant store Los Encinos in Honduras “pays back” 100% of the amount of the agreed upon contribution, while the Esperanza of the Campesinos Cooperative with several supermarkets, “pays back” based on the amount that each member buys from those supermarkets.

These criteria promote the capacity of each member, and increase their trust in the collectivity that the cooperative is. There are members with more financial capacity and do not necessarily have larger contributions in the cooperative; it depends on the trust that the members have in their cooperative, and on the opportunity cost that each member thinks their resources have. In this sense, the biblical parable of the talents (Mt 25: 14-30) illustrates part of what the cooperative looks to incentivize with direct distribution; in that parable three people receive talents, one 5, another 2 and another 1, “in accordance with their capacity”. After a time, the person who received 5 and the one who received 2 double theirs, and the one who received 1 maintained it. In light of this, the person who gave them the talents rewarded the first two, and took away the only talent from the third, “because he who has, will be given more, and they will have an abundance, but he who does not have, even what they have will be taken away from them.”

From the religious context, this indicates that God gives people talents in order to develop them, which reveals an individual vision, where each person is responsible for duplicating their talents. From the cooperative context, one is “paid back” in proportion to the trust and loyalty of that member, demonstrated by contributions, savings, delivery of product or amount purchased; that “payback” is not taken away from them in the cooperative, in contrast with what happens in the parable of the talents, where each individual responds individually with the talents received; instead, there is cooperation among the members mediated by commonly agreed upon rules, compliance mechanisms and there is accompaniment so that each member might increase their capacities; there is individual responsibility within the framework of collective responsibility.

3.3  Compensating by rights those who resign from the cooperative

Following cooperative statutes, the member who resigns from the cooperative has the right to the return of their extraordinary contributions, and the “reimbursement of social assets” (shareable surplus) within a term generally of 90 days. This “departure” arrangement should be thought of and agreed upon from the beginning when the cooperative is founded, even though it is clear that in the beginning, being immersed in making the cooperative survive, no one thinks about this; it should be done, because it is thinking about the future, and because each member should be clear about their rights from the very beginning[9].

In our societies the member who resigns from the cooperative tends to leave without recovering, many times, not even their contributions; likewise, those who die, their relatives do not tend to receive any benefit that by rights the family members are due. For some members, having joined a cooperative is even a financial loss. In the case that there are voices that are raised about this, some board members pull out the ghost that “distributing is decapitalizing”.

If the cooperative does not pay the member who resigns, or the relatives of those who die, in accordance with their rules and the rights of each member, the cooperative signals distrust in its own future, and sends an erroneous message that they are not members, that the “cooperative does not belong to its members”, which undermines any sense of ownership of those who stay in the cooperative, and those in the community who observe it. If in contrast, the members fulfill the rights that each members has on leaving the cooperative, that they be paid the part that corresponds to them that the cooperative has at that moment, probably that person will leave with a good amount of resources, and happy for having been a member of a coop. In the short term, this is a hard moment for the cooperative, because it is going to disburse in cash resources what it surely needs; at the same time, each member will see themselves in the person who resigns: in the same way that they treat the person who leaves, they will treat me. If the member joined the cooperative with little, and leaves with a good amount of resources, those who remain will ask themselves: if after the cooperative fails, will we be the most unlucky ones? The doubts will keep them up at night. But in the long term, those who are left are less, which means that they will receive more from the future resources that the cooperative accumulates; more than that, each member, seeing that the one who left took what corresponded to him, will confirm that in truth he is a member of the cooperative, that the cooperative really does belong to him.

Let us talk about numbers to estimate the amount that could be due to a person who resigns. What is the arrangement with the member who leaves? A member who leaves or dies, that person or their relatives have the right to part of the assets or resources that the cooperative has generated. Let us help ourselves with an example. If through the use of the “cooperative fund” or the “reinvestment fund”, extraordinary contributions of $100 per member, and donations that the cooperative received, a cooperative has assets valued at $200,000; if that cooperative had 20 members at its founding 10 years ago; then if one of them resigns from the cooperative, they are due $10,000 (200,000/20 = 10,000). This amount could be paid over a term that the statutes indicate, or, if the cooperative does not have the $10,000 available, they can arrive at friendly arrangements for the time frame for the payment.

The biggest impact of this fact, nevertheless, is not in the financial “payback”, but in the fact that the 19 remaining members, and the rest of the community, confirm that effectively the cooperative does belong to its members. This is the seed of incomparable ownership. This implies greater trust, loyalty and the deployment of individual and collective capacities.

Concluding this section, distribution in the cooperative generates equity, and incentivizes the development of each member. An estimate of 40% of the surplus protect the cooperative from losses, increases their investments or their own capital fund, and contributes to the community with unique investment in education. With an estimated 50% of the surplus, the cooperative incentivizes the development of the capacities of each member, their trust and mutual loyalty. And with an estimated 10% of the surplus, the cooperative ensures the recognition of members who leave the cooperative, far from seeing it as a “financial loss”, they recognize the rights of the cooperative member and with that plant the seed of ownership. This collective and individual outcome is the way in which the cooperative distributes its surplus with equity, which is connected to the virtuous peasant institutions of giving-receiving-paying back, expressed in shared labor, sharecropping, and shared harvesting, among other institutions.

Now that distribution with equity appears obvious, along with its importance. How can it be carried out?

4.    How to implement equitable distribution

Inequitable pay back… breaks down the organization

The Spanish, Mexicans and US tried to dominate the Apaches; they failed. The Apaches had the nant’an as their leaders, they were decentralized, operated in circles. Their adversaries, as they did with the Aztecs and the Incas, did away with the

nant’an, but the Apaches did not fall apart, immediately another nant’an would emerge. But one day the North Americans donated cattle to the nant’an; since cattle were scarce, the nant’an had the power to distribute them, so everyone wanted to be nant’an, the egalitarian power structure became hierarchical. The Apaches were defeated.

(Based in Brafman, O. and Beckstrom, R.A., 2007, The spider and the starfish. Barcelona: Empresa Activa).

This historical passage shows us that distribution is more than distribution of surplus. It is important to have holistic egalitarian structures that include equitable rules and mechanisms for carrying them out. Before continuing, we cannot avoid comparing this event of the Apaches with the action of the government in the parable at the beginning of this article; the government in the parable, and the North Americans in this other one, seek to subordinate the cooperative or the Apaches, the first donates land to them, and the second donates cattle, in both cases without “payback”, thus they undermine them before their members, leave them not looking toward their community, which causes the cooperative and the Apaches to fall apart. Militarily the Apaches were indomitable, but a simple donation eroded their entire organization, like termites on wood. How did this happen?

The Apaches lacked equitable rules for the distribution of assets donated to their leaders. The North Americans took advantage of that gap, and donated the asset that was the scarcest, cattle, directly to the nant’an and not to the Apache tribe that surely had their own organization. This practice internally stirred up the Apaches, who fought over being nant’an, for having that connection to the North Americans and accessing the cattle; surely, like the managers or presidents in conventional cooperatives, the nant’an said to their tribe that the “cattle had cost them”, that they should be content with what “trickled down”, that they were their “connections”, and that without them they would all die of hunger -or in other words, the evil of the “big headed dwarf” began to corrode the minds of the nant’an and sow distrust in the rest of the tribe. This process led them to become hierarchical structures, and consequently to collective failure; it is what has also happened to most of the conventional cooperatives.

Cooperatives, in contrast to the Apaches, have rules and mechanisms for equitably distributing the surplus (including donations), but they lack democratic processes in their functioning, which is why they do not comply with their rules for equitable distribution. In many cases the cooperatives were started by the State with donations in land or other assets, undermining them from their own beginnings. International organizations (buyers, financiers and donors) have continued on this same path. Like the North Americans with the Apaches, they only connect with the nant’an of the cooperatives (managers or presidents), and they are not interested in knowing the consequences that their actions provoke. How can cooperatives fulfill their rules and make distribution their most valuable attribute for growing equitably?

This point about the Apaches leads us to understand that a cooperative that distributes its surplus with equity is that which, in addition to having rules for it, is democratic and transparent: See Figure 3.

If the organs, in democratic exercise, ensure the fulfillment of the agreements about equitable distribution, that cooperative will embark at a good port. In the case of the Apaches, their organs operated around resisting militarily, including their food, but they lacked the rules for donations and relationships with external actors. We can imagine that the Apaches, in decentralized groups, hunted animals for food; for which they had their rules and they applied them, but not so that some nant’an individually might receive 10 head of cattle as a gift behind the backs of the tribe, even precisely for their tribe.

This combination (rules-democracy) requires, nevertheless, a third foot: transparency. It is depressing to find members who after contributing for 5, 10 or 15 years do not know how to add up their contributions, and that do not recognize their rights over the surplus. It is not just having democratic economic management coherent with the rules themselves and the rotation of members in the different offices and decision making in the corresponding organs, but informational transparency with the members and with the allies. The idea of transparency or accountability in the cooperative is not being subject to trial, measured and humiliated by “the magic of the numbers”. It is sharing information that in turn forms and commits the members. A member can understand that their surplus might be $30 per qq of coffee that they have delivered to the cooperative, if he is informed about how that surplus was produced; otherwise that person will see that surplus as “an award” or a “favor” of the patron, as his historical rules make him see it. Distributing surplus implies distributing responsibilities (democracy) and information; the way “the legal reserve”, “investment fund” and “social fund”; the expenses and income… were produced and used. This information forms people and commits them: the member, based on transparent information, will want to participate in the definition of the goals for the year for their cooperative, and will want to be part of the implementation of those goals, because he recognize that his individual surplus will increase, that the benefits to his community will improve, that if the cooperative increases its reinvestment, any member who leaves will be able to go with more resources. In addition, if the first tier cooperative is a member of a second tier cooperative, the member also needs to be informed about the second tier cooperative, know how surplus is generated in that organization, and how much is due his cooperative, and how much of that amount is due each member. That explanation can happen in an assembly, in visits to each member family, on whiteboards or through brochures, and on the day of the distribution of surplus, combine festivities and information.

Correspondingly, transparency implies being accountable; for example, it is commendable that the credit record include columns for the amount of credit, amount past due and contributions; it is also commendable that the record include the amount that the member is leaving for “legal reserves”, “social fund” and for the “reinvestment fund”; the first format for the record contains control information for the member, and the second format has the accounting of the cooperative to its members. Being accountable in the assembly about their resources expresses the rights of each member, and it is an obligation of the cooperative that each member know that. From here, if the members are informed about each step of their cooperative, they will be committed to their cooperative, if their cooperative faces difficulties, they will sweat the fear of failing and will row the canoe together even in the midst of the biggest waves.

Equitable distribution is possible within a framework of democracy and transparency. There, being a cooperative member is thinking beyond salary, beyond raw materials and beyond exported product; it is thinking about the entirety of the cooperative, and the entirety of the chain of actors where value is created. In other words, it is breaking down the walls of Figure 2 and understanding that what creates value is the human work of the working person, producer, processer, importer, roaster and seller of the coffee in the stores and coffee shops. It is “I touch you and you touch me”, entering into different worlds. This implies including the international organizations and companies, which goes in the direction of global triangulation that we worked on in several other articles, about an alliance of actors that work for equitable distribution.

5.    Conclusions

You read a book from beginning to end. You lead a business just the opposite way. You start with the end, then you do what you have to in order to achieve it.

Harold Geneen, 1984, Managing. New York: Double-day

At the beginning of the article we asked ourselves how cooperatives can distribute (“pay back”) in order to grow with equity. Equitable distribution in a renovated cooperative is very different from the distribution of the market in the neoliberal economy, which is one unilateral way, from society to businesses and institutions, from which there is no “pay back” beyond what “trickles down”.

In the renovated cooperative, and in alliance with global actors, equitable distribution is illustrated in Figure 4.

It is the distribution of surplus combining the collective (social fund, reinvestment fund, and legal reserves) and the individual (direct distribution to the member for their differentiating actions and payment of what by right is due the member who leaves); it is financial and social distribution. Then, equitable distribution implies that the organization be democratic (rotation of officers, collegial decisions and compliance with the rules). Then equitable distribution implies distributing information under the maxim that the more informed the members are, the better their decisions will be.

This notion of equitable financial, social and political distribution (democratic and transparent), mobilize energies and hearts when it is connected to the endogenous institutions of the members, in our case, the peasantry. Consequently, each member feels part of the cooperative, seeks to know its goals, have an impact on them and commit themselves to fulfilling them.

Finally, when the members and their global allies follow equitable distribution connected to endogenous institutions, that is when they see the entirety of the cooperative and the entirety of the value-added chain with equity. Far away are left the “walls” that separated the worlds. Paraphrasing Harold Geneen, we organize a cooperative from its end, from its equitable distribution to the benefit of the members and their local and global communities. The more that is distributed, the more that it grows.

[1] René has a PhD in development studies, is a collaborator of the Winds of Peace Foundation, member of the COSERPROSS cooperative, and associate researcher of the IOB-University of Antwerp (Belgium). rmvidaurre@gmail.com

[2] Mauss (1979: 204-211), based on a type of distribution known as potlach, practiced in Eskimo societies in the Northwest of the US, finds the triple obligation of the gift culture: giving, receiving and paying back. “You do not have the rights to reject a gift, a potlack, because acting in this way makes clear that you are afraid to have to pay back and be left diminished, it is losing the “importance” of your name, it is declaring oneself beaten in advance, or in some cases proclaiming oneself victor or invincible” (p. 208). Marcel Mauss, 1979, Ensayo sobre los Dones. Motivo y forma de cambio en las sociedades primitivas, en: Sociología y Antropología, Madrid. Note that this identified institution is pretty similar to institutions of indigenous communities in Latin America.

[3] Polanyi, K., 1976, El sistema económico como proceso institucionalizado, en: Antropología y Economía (ed. Godelier, M.), Barcelona pp. 155-178

[4] Santana, M.E., 2014, “Reciprocidad y Redistribución en una Economía Solidaria” in: Ars & Humanitas 8/1. Slovenia.

[5] Surpluses result from deducting costs and expenses of the cooperative, amortization (value for deterioration of fixed assets). In associative organizations the term “profits” is used more, which is pretty similar to “surpluses”. The term “earnings” is different, there could be earnings through a discount if a product is sold above its acquisition price.

[6] W. Berrios, from the CAFOD aid agency, refers to the fact that some aid agencies linked to churches in Europe tend to withdraw their support for organizations that in theory assume the social and solidarity economy approach, but in practice do not follow it, and that instead become part of conventional mediation.

[7] Several buyer companies left Fair Trade on realizing that their premium payments were not getting to the member families, so they formed another movement called direct trade, to get around “cooperative mediation”. There are also European enterprises and cooperatives that buy coffee or cacao in Central America and want the cooperative that they work with to distribute their surpluses; correspondingly, some of them avoid the second-tier cooperatives and prefer buying directly from the first-tier cooperatives.

[8] Polanyi, K., 2001, The Great Transformation: The Political and Economic Origins of Our Time. Second Edition. Google Books. (First publication in English in 1957).

[9] See: Jack Stack, 2002, A Stake in the Outcome, New York: Doubleday. Stack, along with other workers, founded an innovative enterprise in the United States. In this book he recounts how they struggled with this issue from the beginning of their company. If they did it as a company, how much more should a cooperative!