COMMITMENT TO ACTION

Partnering for Local Sourcing in the Dominican Republic

Commitment by Clinton Giustra Enterprise Partnership

In 2019, the Clinton Giustra Enterprise Partnership (CGEP), in partnership with Club Med and Pan American Development Foundation, committed to conduct a market and value chain assessment to determine the viability of a smallholder-sourced agribusiness that connects local smallholder farmers to local buyers for selected crops in the Dominican Republic. Smallholder farmers in the region face threats from natural disasters, low productivity, and little to no information about, or proximity to, end-markets that pay fair prices for their products. Despite this, the country has emerged as one of the world’s foremost exporters of niche (organic, quality, fair trade) products. Through this commitment, CGEP will collect and analyze data to determine the viability of an agribusiness that leverages value-add crop. Ultimately, CGEP will use the findings to develop a pilot plan and early stage business plan for the proposed agribusiness. If implemented, this would support demands while improving local agricultural productivity, increasing the income of local farmers, and creating job opportunities.



Overview
Summary

Commitment

Partnering for Local Sourcing in the Dominican Republic

Launched

2019

Est. Duration

1 Year

Estimated Total Value

$48,668

Region

Latin America & Caribbean

Countries

DOMINICAN REPUBLIC

Commitment by

Clinton Giustra Enterprise Partnership

Partner(s) of the Commitment Maker(s)

Club Med; Pan American Development Foundation
Details

Clinton Giustra Enterprise Partnership (CGEP) commits to conducting a market and value chain assessment to determine the viability of a smallholder sourced agribusiness for selected crops in the Dominican Republic. This commitment builds upon on the work of CGEP, Club Med, and PADF to create sustainable economic opportunities for smallholder farmers and boost environmental sustainability in the Caribbean. To support this effort, CGEP will complete a detailed analysis to determine the viability of an agribusiness. The proposed agribusiness would serve as a one-stop solution tailored to buyers’ needs and improve farmer productivity and incomes. It will seek to provide sustainably-sourced, high quality local products that meet Club Med and other buyers’ demands at competitive prices and help improve the livelihoods of farmers and farming communities in Dominican Republic.

The feasibility of the agribusiness will be determined through four-month project from mid-May to September 2019. Information will be collected through leveraging CGEP’s existing network of partners including farmers, fishers, and local retailers, supermarkets, fast food chains, and other quality buyers. Key activities include: (a) mapping partner preferences, including crops, regions, and target beneficiaries, through partner interviews, meetings, and opportunity scoping; (b) interviewing 10 interested buyers to map buyer specifications and requirements, and discuss initial purchase commitments; (c) interviewing with 20 organizations working with smallholder farmers or funding smallholder agriculture work; (d) conducting pre-feasibility analysis of targeted crops based on preliminary aggregated data, value chain assessment, interviews, and desktop research to determine potential social impact, target community needs, and commercial viability; (e) conducting further feasibility analysis, including detailed community needs assessment, social impact potential, full target crop value chain assessments and financial modeling via desktop research, stakeholder and expert interviews, site visits, and farmer and community surveys in Miches, Santo Domingo, and Punta Cana; and (f) developing a pilot plan and early stage business plan, including budget, rollout plan, partner agreements, possible legal and investment structures, and key financial and social impact targets. Phase 1 will conclude with a presentation of findings to partners in September 2019.

April 22, 2019: Began preliminary desktop research and planning.

May 13, 2019: CGEP commenced initial site visits and partner interviews in the Dominican Republic.

June 1, 2019: PADF commences fieldwork to analyze crops/farmer communities and identify the technical assistance needed by these farmers.

July 1, 2019: Develop a pilot plan and early stage business plan, including budget, rollout plan, partner agreements, possible legal and investment structures, key financial and social impact targets, and the design of a technical assistance/capacity building program incorporating sustainable agriculture practices with input from PADF.

August 9, 2019: Submit final market assessment of selected crop value chains and pilot project plan.

September 2019: Presentation of Phase 1 findings to partners.

Background

Agriculture is the fourth-largest economic sector in the country, representing 11% of GDP and nearly 12.6% of employment. However, agriculture has declined in significance since the 1970s, as manufacturing, mining, and tourism began to play more important roles in the country's development. Despite this, the Dominican agricultural sector has a comparative advantage given its natural resources and geographic location. The Dominican Republic (DR) has emerged as one of the world’s foremost exporters of niche (organic, quality, fair trade) products. With about 14,000 organic growers in the country, it is one of the largest organic sectors in Latin America.

Smallholder farmers account for 73% of the farmers in the DR. These smallholder farmers face threats from natural disasters, low productivity, little to no information about, or proximity to, end-markets that pay fair prices for their products. As a result, the DR is a net importer of food.

Clinton Giustra Enterprise Partnership (CGEP) is a social business builder that brings entrepreneurial solutions to global poverty by building market-driven social agribusinesses that connect local smallholder farmers to local buyers to improve local agricultural productivity, increase the incomes of local farmers, create job opportunities, and boost the local economy. Leveraging this model has the potential to re-establish agriculture as an engine of economic growth for the Dominican Republic.

Partnership Opportunities

CGEP is seeking to partner with local and international organizations working with smallholder farmers, organizations and communities in Dominican Republic. Additionally, CGEP is seeking to incorporate other buyers (supermarkets, retailers, hotels, fast food chains, etc.) interested in high quality, local, sustainable sourcing solutions that contribute to local economic development in Dominican Republic.

Progress Reports