July 2, 2009...9:48 am

East Timor: A true economy of solidarity

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Blog-KSI-CDC-exchange-1“Our chips are the best in town and that’s a fact” is how Natercia Matos da Costa Lemos introduced her kripik (chips) group to the 30 budding entrepreneurs who came to visit her thriving home industry.

The entrepreneurs came from far and wide, and were a motley crew of food processors (jams, tomato sauce, banana chips), coffee and rice co-operatives, fish rearing groups and even blacksmiths.

Arriving from the districts of Baucau, Ermera and Manufahi, the gang visited Natercia’s little chip factory as part of a marketing workshop to improve their own business skills.

The aim was to help each group understand better how to move their product successfully down the chain from producer to consumer, and to identify where problems might occur.

In the case of Natercia, her group started with banana chips in early 2008 and, just over one year later, have diversified to include five different chip varieties – such as cassava and sweet potato.

By using locally produced crops, the business guarantees a buyer for small farmers in the region. Then, by processing the raw materials themselves, the group ensures employment for its 20 members.

Natercia started by selling ten banana chip bags each week to the local gas station in Baucau – Timor’s second largest city. Today, this has risen to more than 70 bags per week.

She is supported by our partner CDC (Centro de Desenvolvimento Comunitario), a professional training centre which works with five such processing groups in the local region.

Each group has their own niche: chilli paste, tomato sauce, jams, chips, virgin coconut oil, tamarind candies etc. The jams group, for instance, has sold 2,224 bottles (papaya, pineapple, guava) this year alone, more than doubling their sales from last year.

In fact, one of their best buyers is the government, who purchases the jams to supply the local school feeding program.

Natercia tells me that the success of her group – and others – can be attributed to the help given by CDC staff, involved throughout the development of the business.

CDC has provided training on technical issues, such as chip making, as well as organisational issues such as good, sound financial management.

In a country where 80% of the population still relies on agriculture, and where nearly all the processed food consumed is imported, farmers have a hard time finding a market for their produce.

Organising these food processing groups really helps establish a market for small farmers, while also guaranteeing employment for group members – it is a true economy of solidarity.

Posted by GiseleH

1 Comment

  • Great story.
    Ever considered hydroponic projects? I remember a local iwi-Maori here (tribe) that got in to it using recylced building pipes etc to set up an organic hydroponic “greens” farm supplying local restaurants with fancy lettuces etc.
    Such a project may be worth a look at in Timor: links to agriculture and tourism (via restaurants/ hotels supplies) which are both key Govt priorities. Also low capital and “seed” capital required!
    Keep up the good work!


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