COMMITMENT TO ACTION

High Quality Local Sourcing in Puerto Rico

Commitment by Clinton Giustra Enterprise Partnership

In 2019, the Clinton Giustra Enterprise Partnership (CGEP), in partnership with Marriott International, Avendra/Aramark, and Walmart, committed to conducting a market and value chain assessment to determine the viability of a smallholder sourced agribusiness for selected target crops in Puerto Rico. This partnership builds upon on the work of Marriott International, Avendra/Aramark, and Walmart to incorporate sustainability across their value chains locally and across the globe. CGEP builds from scratch, invests start-up capital, and manages agribusinesses that work with smallholder farmers and fishers. CGEP’s agribusinesses provide sustainably-sourced, high-quality local products that meet buyers’ demand at competitive prices and help improve the livelihoods of farmers and farming communities by improving agricultural productivity, creating job opportunities, and facilitating long-term linkages to high-value markets. This commitment will cover the first of CGEP’s three-phased agribusiness building process which includes the market and value chain analysis and the building of the business case for high-quality local sourcing in Puerto Rico.



Overview
Summary

Commitment

High Quality Local Sourcing in Puerto Rico

Launched

2019

Est. Duration

1 Year

Estimated Total Value

$39,600

Region

Latin America & Caribbean

Countries

PUERTO RICO

Commitment by

Clinton Giustra Enterprise Partnership

Partner(s) of the Commitment Maker(s)

Marriott International, Inc.; Walmart; ARAMARK Corporation
Details

Background

Puerto Rico’s economy was based in agriculture for over 400 years, but the rapid industrialization, economic policy changes, and rural to urban migration of the past 70 years shifted the island’s economy away from agriculture. The sector represents less than 1% of Puerto Rico’s GDP, lagging far behind manufacturing, finance, and tourism.

Despite some growth in recent years, hurricane Maria decimated Puerto Rico’s agricultural sector, destroying about 80 percent of the island’s crop value and causing estimated losses to crop and livestock production and infrastructure of more than $2 billion. The storm took a heavy toll on smallholder farmers and further aggravated Puerto Rico’s food import dependency, which stood at 85% before María and jumped to 95% after the storm.

Providing smallholder farmers with technical and financial assistance and enhanced market access will be critical to recover livelihoods, increase food security, and re-establish agriculture as an engine of economic growth for Puerto Rico. A market-driven social business that connects local smallholder farmers to local buyers has the potential to improve local agricultural productivity, increase the incomes of local farmers, create job opportunities, and boost the local economy. Buyers benefit from competitive prices, high product quality, and the opportunity to impact low-income communities by purchasing local products.

Progress Reports