docmaster`s thesis - Rio Rural - Governo do Estado do Rio de Janeiro
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Denúncia Transcrição
master`s thesis - Rio Rural - Governo do Estado do Rio de Janeiro
! ! ! ! MASTER’S!THESIS! ! Master!of!Science!in!Technology!and!Resources!Management!in!the!Tropics!and! Subtropics!(TERMA)! ! ! COLOGNE!UNIVERSITY!OF!APPLIED!SCIENCE! ITT!3!INSTITUTE!FOR!TECHNOLOGY!AND!RESOURCES!MANAGEMENT!IN!THE!TROPICS!AND!SUBTROPICS! ! VALUE!CHAIN!ANALYSIS!FOR!DECISION3MAKING!ON!THE!MOUNTAIN!AND!NORTHWEST! RURAL!REGION!OF!THE!STATE!RIO!DE!JANEIRO,!BRAZIL! ! ! ! ! ! Juliana!Minetto!Gellert!Paris! Cologne,!Germany!! 2015! ! Master!of!Science!in!Technology!and!Resources!Management!in!the!Tropics!and! Subtropics!(TERMA)! ! Cologne!University!of!Applied!Science! ITT!3!Institute!for!Technology!and!Resources!Management!in!the!Tropics!and!Subtropics! ! VALUE!CHAIN!ANALYSIS!FOR!DECISION3MAKING!ON!THE!MOUNTAIN!AND!NORTHWEST! RURAL!REGION!OF!THE!STATE!RIO!DE!JANEIRO,!BRAZIL! ! Thesis!to!Obtain!the!Degree!of! MASTER!OF!SCIENCE! TECHNOLOGY!AND!RESOURCES!MANAGEMENT!IN!THE!TROPICS!AND!SUBTROPICS!IN!THE! SPECIALIZATION:!!LAND!MANAGEMENT! DEGREE!AWARDED!BY!COLOGNE!UNIVERSITY!OF!APPLIED!SCIENCES! PRESENTS:! JULIANA!MINETTO!GELLERT!PARIS! ! SUPERVISOR!OF!THESIS!ITT:! PROF.!DR.!SABINE!SCHLÜTER! COXSUPERVISION:! DR.!JUAN!CARLOS!TORRICO!ALBINO! ! ! DATE!OF!SUBMISSION! 12.09.2015! ! Presented!by! Juliana!Minetto!Gellert!Paris!!!!Student!no.:!11092497!!!Email:[email protected]! ! PARIS,!Juliana!Minetto!Gellert! Value!Chain!Analysis!for!decisionXmaking!on!the!Mountain!and!Northwest!Region!of! the!State!Rio!de!Janeiro,!Brazil!XX!Cologne,!2015! 230p.! Master’s!Thesis!–!ITT!X!Institute!for!Technology!and!Resources!Management!in!the! Tropics!and!Subtropics! 1.!Family!farming.!2.!Value!chain!analysis.!3.!Rio!de!Janeiro.!4.!Rural!sustainable! development!5.!Horticulture.!6.!Coffee.!7.decisionXmaking! Cologne!University!of!Applied!Science!(CUAS)! ! Examination!Board! !!!!!!!!!!!!!Prof.!Dr.!Sabine!Schlüter!! !!!!!!!!!!!!!!!!!!!!!!(ITTXCUAS)! ! ! ! ! ! ! ! ! ! Helga!Hissa! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Tech.!Coord.!SEAPECXPRR! SPECIAL!CREDITS!TO:! ! PROJECT!INTECRAL!–!INTEGRATED!ECO!TECHNOLOGIES!AND!SERVICES!FOR!A! SUSTAINABLE!RURAL!RIO!DE!JANEIRO! ! ! PERFORMED!BY:! ! INSTITUTE!FOR!TECHNOLOGY!AND!RESOURCES!MANAGEMENT!IN!THE!TROPICS!AND! SUBTROPICS!! ! AND! !! “PROGAMA!RIO!RURAL”!3!SECRETARIAT!OF!AGRICULTURE!AND!LIVESTOCK!OF!RIO!DE! JANEIRO!STATE! ! ! SUPPORTED!BY:! ! SCHOLARSHIP!3!CENTERS!FOR!NATURAL!RESOURCES!AND!DEVELOPMENT!(CNRD)! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! To!my!beloved!husband,!Alexandre!who!gave!me!unconditional!support!in!my!journey! To!my!dear!parents,!Ana!Cristina!and!Cláudio,!my!brother!Thiago!and!my!grandparents!! And!to!my!little!nephew!Dudu! ! ! ! ACKNOWLEDGEMENTS! I!would!like!to!express!my!truthful!gratitude!to!all!SEAPECXPRR!team,!who!strongly!supported!my! research!in!Brazil.!Specially!Jarbas!Saraiva,!Marcos!André!Jogaib,!Marcelo!Costa,!Ueber!Said,!and! Nelson!Teixeira.! Special! thanks! to! my! supervisor! Prof.! Dr.! Sabine! Schlüter,! who! gave! me! the! opportunity! to! participate!in!the!INTECRAL!project,!and!has!always!been!patient!and!understanding.!Many!thanks! to!Helga!Hissa!for!agreeing!and!availing!herself!of!time!to!be!part!of!the!examination!board.!! I!express!my!sincere!gratitude!to!Margarete!Satsumi!Tiba!and!her!family!and!Nair!&!Antonio!José! and! their! family,! Rosane! Bendia! Grazioli! (EMATER! VarreXSai),! and! Gerson! Yunes! (EMATER! Serrana).!Who!mostly!supported!the!research!on!the!field,!and!to!whom!I!am!deeply!grateful!for! the!contribution!to!the!concretization!of!this!study.! I! would! like! to! acknowledge! the! help! and! support! given! by! Berenice! Quintana! and! Juan! Carlos! Torrico!(INTECRAL);!Luiz!Antonio!Antunes!and!Jorge!Alves!(PESAGRO),!Ian!Luis!Galliez!(colleague! researcher),! Antonio! Carlos! and! Adalberto! (CEASA! Seinp),! Marcelo! Silva! (Secretariat! of! Agriculture,! Livestock! and! Supply! of! Nova! Friburgo),! Paulo! Ricardo! Crispin! (“Mercado! do! Produtor”!in!Nova!Friburgo),!José!Ferreira!and!Márcio!Vargas!(COOPERCANOL).!! I!am!extremely!grateful!to!Miriam!and!Ricardo!Paris,!for!supporting!my!stay!in!Rio!de!Janeiro,!and! for!helping!me!with!the!research.!I!am!also!thankful!to!Eliane!Taddei,!for!all!the!encouragement! given!and!the!help!with!the!English!in!my!assignments.! I! would! like! to! acknowledge! all! my! INTECRAL! team! colleagues! for! the! companionship! and! encouragement!during!the!research.!I!was!delighted!to!work!with!this!wonderful!team.! Finally,!I!am!sincerely!thankful!to!all!producers!in!the!microXbasins!Barracão!dos!Mendes,!Santa! Cruz,! VarreXSai! and! Ribeirão! da! Onça,! to! whom! I! devote! this! work.! Without! their! participation,! this!research!wouldn’t!have!been!achieved.! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! “Hope!is!not!the!conviction!that!something!will!turn!out!well!! but!the!certainty!that!something!makes!sense,!! regardless!of!how!it!turns!out.”! former!Czech!president!and!dramaturge!Václav!Havel! TABLE&OF&CONTENTS& 1.# CHAPTER:#INTRODUCTION# 1# 1.1.! BACKGROUND# 1.2.! PROBLEM#STATEMENT# 1.3.! RESEARCH#GAPS# 1.4.! OBJECTIVES# 1.4.1.! GENERAL*OBJECTIVE! 1.4.2.! SPECIFIC*OBJECTIVES! 1.5.! RESEARCH#QUESTIONS# 1! 2! 4! 5! 5! 5! 6! 2.# CHAPTER:#STATE#OF#THE#ART# 7# 2.1.! THE#ROLE#OF#FAMILY#FARMING#ON#THE#SUSTAINABLE#RURAL#DEVELOPMENT# 2.1.1.! THE*ISSUE*OF*FAMILY*FARMING*IN*BRAZIL! 2.1.2.! BRAZILIAN*PRO;FAMILY*FARMING*POLICIES! 2.1.3.! HURDLES*OF*THE*BRAZILIAN*SUSTAINABLE*RURAL*DEVELOPMENT! 2.2.! CONCEPTUAL#FRAMEWORK#OF#VALUE#CHAIN#ANALYSIS#(VCA)# 2.2.1.! DEFINITION*OF*VALUE*CHAIN*(VC)! 2.2.2.! THE*CONCEPT*OF*VALUE*CHAIN*ANALYSIS*(VCA)! 2.2.3.! THE*APPROACH*OF*VALUE*CHAIN*ANALYSIS*(VCA)*FOR*DECISION;MAKING! 2.2.4.! OVERVIEW*OF*RECENT*STUDIES*ON*THE*FIELD! 7! 7! 10! 13! 15! 15! 16! 17! 18! 3.# CHAPTER:#RESEARCH#AREA# 21# 3.1.! VALUE#CHAIN#A:#COFFEE# 3.1.1.! SUMMARY*OF*THE*MUNICIPALITY*VARRE;SAI! 3.1.2.! CHARACTERISTICS*OF*MB1*AND*MB2! 3.1.3.! ORGANIZATION*OF*RURAL*COMMUNITIES*IN*MB1*AND*MB2! 3.2.! VALUE#CHAIN#B:#HORTICULTURE# 3.2.1.! SUMMARY*OF*THE*MUNICIPALITY*NOVA*FRIBURGO! 3.2.2.! CHARACTERISTICS*OF*MB3*AND*MB4! 3.2.3.! ORGANIZATION*OF*RURAL*COMMUNITIES*IN*MB3*AND*MB4! 21! 21! 22! 23! 23! 24! 24! 25! 4.# CHAPTER:#METHODOLOGY# 26# 4.1.! RESEARCH#DESIGN# 4.2.! METHODS#E#VALUE#CHAIN#ANALYSIS#(VCA)# 4.2.1.! STEP*1:*SOCIOECONOMIC*SITUATION*OF*THE*VALUE*CHAIN! 4.2.2.! STEP*2:*DEMAND*FOR*VALUE*CHAIN*OUTPUTS! 4.2.3.! STEP*3:*ANALYSIS*OF*THE*INSTITUTIONAL*SETUP! 4.2.4.! STEP*4:*ANALYSIS*OF*INPUT*AND*OUTPUT*MARKETS! 4.2.5.! STEP*5:*FUNCTIONAL*ANALYSIS! 4.2.6.! STEP*6:*ECONOMIC*ANALYSIS*OF*THE*VALUE*CHAIN! 4.2.7.! MARKET*MAP*FRAMEWORK! 4.3.! TOOLS#AND#INSTRUMENTS# 4.3.1.! DATA*REQUIREMENTS*FOR*VALUE*CHAIN*ANALYSIS! 4.3.2.! SAMPLING! 4.3.3.! DATA*SOURCE*AND*COLLECTION*METHODS! 4.4.! DATA#ANALYSIS# 26! 27! 28! 28! 28! 29! 30! 31! 35! 35! 35! 36! 38! 40! 5.# CHATER:#RESULTS#AND#DISCUSSION#–#VALUE#CHAIN#A#(COFFEE)# 41# 5.1.! STEP#1:#SOCIOECONOMIC#CONTEXT#OF#THE#VALUE#CHAIN#A:#COFFEE# 41! ! i! 5.1.1.! PANORAMA*OF*THE*BRAZILIAN*COFFEE*ECONOMY! 5.1.2.! ECONOMIC*PERFORMANCE*OF*THE*COFFEE*SECTOR! 5.1.3.! COFFEE*PRODUCTION*IN*THE*STATE*OF*RIO*DE*JANEIRO! 5.1.4.! FLUMINENSE’S*NORTHWEST*REGION*COFFEE! 5.1.5.! PRODUCTION*IN*THE*STUDY*AREA! 5.1.6.! HOUSEHOLD*SOCIO;ECONOMIC*SURVEY*OF*VALUE*CHAIN*A! 5.2.! STEP#2:#DEMAND#FOR#COFFEE#VALUE#CHAIN#OUTPUTS# 5.2.1.! COFFEE*DEMAND*–*CONSUMPTION*AND*MARKET*TRENDS! 5.2.2.! COFFEE*CONSUMPTION*IN*THE*STATE*RIO*DE*JANEIRO! 5.2.3.! DEMAND*FOR*OUTPUTS*IN*THE*NORTHWEST*REGION! 5.2.4.! QUALITY*OF*RIO*DE*JANEIRO’S*COFFEE! 5.3.! STEP#3:#INSTITUTIONAL#SET#UP#OF#VALUE#CHAIN#A# 5.3.1.! BRAZILIAN*COFFEE*LEGISLATION*FRAMEWORK! 5.3.2.! FARMER’S*ORGANIZATIONAL*STRUCTURE! 5.3.3.! INSTITUTIONAL*SUPPORT! 5.4.! STEP#4:#INPUT#AND#OUTPUT#MARKETS# 5.4.1.! THE*COFFEE*MARKETPLACE! 5.4.2.! DEGREE*OF*COMPETITIVENESS! 5.5.! STEP#5:#FUNCTIONAL#ANALYSIS#VALUE#CHAIN#A#(COFFEE)# 5.5.1.! SETTING*THE*BOUNDARIES! 5.5.2.! IDENTIFICATION*OF*ACTIVITIES*AND*TECHNICAL*ANALYSIS! 5.5.3.! IDENTIFICATION*OF*AGENTS! 5.5.4.! QUANTIFICATION*OF*PHYSICAL*FLOWS! 5.5.5.! INPUT;OUTPUT*MATRICES! 5.5.6.! FINDINGS*OF*THE*FUNCTIONAL*ANALYSIS! 5.6.! STEP#6:#ECONOMIC#ANALYSIS#OF#VALUE#CHAIN#A# 5.6.1.! PRODUCTION*ACCOUNT! 5.6.2.! INCOME*ACCOUNT! 5.7.! MARKET#MAP#FRAMEWORK#VALUE#CHAIN#A# 41! 43! 45! 48! 49! 50! 58! 58! 60! 61! 63! 64! 64! 65! 68! 70! 70! 71! 73! 74! 75! 79! 81! 83! 85! 85! 85! 90! 95! 6.# CHAPTER:#RESULTS#AND#DISCUSSION#–#VALUE#CHAIN#B#HORTICULTURE# 98# 6.1.! STEP#1:#SOCIOECONOMIC#CONTEXT#OF#THE#VALUE#CHAIN#B:#HORTICULTURE# 6.1.1.! OVERVIEW*OF*HORTICULTURE*IN*THE*WORLD*AND*BRAZIL! 6.1.2.! HORTICULTURE*IN*THE*MOUNTAIN*REGION*OF*STATE*RJ! 6.1.2.! PRODUCTION*IN*THE*STUDY*AREA! 6.1.3.! HOUSEHOLD*SOCIO;ECONOMIC*SURVEY*OF*VALUE*CHAIN*B*(HORTICULTURE)! 6.2.! STEP#2:#DEMAND#FOR#HORTICULTURE#VALUE#CHAIN#OUTPUTS# 6.2.1.! DEMAND*AND*TRENDS*ON*VEGETABLE*CONSUMPTION! 6.2.2.! THE*SUPPLY*AND*DISTRIBUTION*SYSTEM*IN*RIO*DE*JANEIRO! 6.2.3.! THE*CEASA;RJ*WHOLESALE*MARKET*DISTRIBUTION*SYSTEM! 6.2.4.! RETAIL*SECTOR*IN*RIO*DE*JANEIRO! 6.2.5.! STREET*MARKET*IN*RIO*DE*JANEIRO! 6.3.! STEP#3:#INSTITUTIONAL#SETUP#OF#VALUE#CHAIN#B# 6.3.1.! INSTITUTIONAL*SUPPORT*AND*GOVERNANCE*IN*THE*MOUNTAIN*REGION! 6.3.2.! GOVERNANCE*SATISFACTION*OF*FARMERS! 6.3.3.! FARMER*ORGANIZATIONAL*STRUCTURE! 6.4.! STEP#4:#INPUT#AND#OUTPUT#MARKETS#IN#VALUE#CHAIN#B# 6.4.1.! SUPPLY*AND*PRICES*AT*THE*WHOLESALE*MARKET! 6.4.2.! DEGREE*OF*COMPETITIVENESS*IN*THE*VEGETABLE*MARKET! 6.4.3.! HORTICULTURE*MARKETPLACE! 6.5.! STEP#5:#FUNCTIONAL#ANALYSIS#OF#VALUE#CHAIN#B#E#HORTICULTURE# 6.5.1.! SETTING*THE*BOUNDARIES*OF*VALUE*CHAIN*B! ! 98! 98! 100! 103! 105! 111! 111! 114! 115! 120! 122! 123! 123! 125! 125! 127! 127! 128! 129! 134! 134! ii! 6.5.2.! IDENTIFICATION*OF*ACTIVITIES*AND*TECHNICAL*ANALSYS! 6.5.3.! IDENTIFICATION*OF*AGENTS! 6.5.4.! QUANTIFICATION*OF*PHYSICAL*FLOWS! 6.5.5.! INPUT*OUTPUT*MATRICES! 6.6.! STEP#6:#ECONOMIC#ANALYSIS#OF#THE#VALUE#CHAIN#B# 6.6.1.! PRODUCTION*ACCOUNT! 6.6.2.! INCOME*ACCOUNT! 6.7.! MARKET#MAP#FRAMEWORK#VALUE#CHAIN#B# 136! 141! 142! 144! 146! 146! 152! 156! 7.# CONCLUSIONS#AND#RECOMMENDATIONS# 158# 9.# REFERENCES# 160# 10.# APPENDICES#AND#ANNEXES# 178# 10.1.! ANNEX#1:#VCA#DATA#REQUIREMENTS# 10.2.! ANNEX#2:#ACCOUNTING#DEFINITIONS# 10.3.! APPENDIX#1:##QUESTIONNAIRE#HORTICULTURE#PRODUCER# 10.4.! APPENDIX#2:#QUESTIONNAIRE#COFFEE#GROWER# 10.5.! APPENDIX#3:#QUESTIONNAIRE#COFFEE#ROASTER# 10.6.! APPENDIX#4:#QUESTIONNAIRE#COFFEE#BROKER# 10.7.! APPENDIX#5:#QUESTIONNAIRE#CEASA#TRADER# 10.8.! APPENDIX#6:#QUESTIONNAIRE#MIDDLEMAN#AND#DISTRIBUTOR#(HORTICULTURE)# 10.9.! APPENDIX#7:#QUESTIONNAIRE#MINI#PROCESSING#PLANT# 10.10.! APPENDIX#8:#JOSÉ#FERREIRA#(COOPERCANOL)#INTERVIEW#TRANSCRIPT# 10.11.! APPENDIX#9:#PHOTOS#FIELDWORK#COFFEE#CHAIN# 10.12.! APPENDIX#10:#PHOTOS#FIELDWORK#HORTICULTURE#CHAIN# 10.13.! APPENDIX#11:#INTERMEDIATE#INPUT#COSTS#OF#FARMERS#IN#VALUE#CHAIN#B# 10.14.! APPENDIX#12:#WAGE#E#VALUE#CHAIN#B# 10.15.! APPENDIX#13:#PROFIT#OR#LOSS#IN#VALUE#CHAIN#B# 10.16.! APPENDIX#14:#SWOT#ANALYSIS#VALUE#CHAIN#B# 178! 180! 181! 186! 190! 192! 194! 197! 200! 202! 203! 204! 205! 206! 207! 208! DECLARATION#IN#LIEU#OF#OATH# 209# ! * ! * iii! LIST&OF&FIGURES& FIGURE*1:*INTECRAL*STRUCTURE*AND*WORKING*PACKAGES!..............................................................................................................!1! FIGURE*2:**FIELD*STUDY*AREAS*OF*INTECRAL*PROJECT!.......................................................................................................................!2! FIGURE*3:!PERCENTAGE*OF*ESTABLISHMENTS*CHARACTERIZED*AS*FAMILY;BASED*AGRICULTURE!........................................................!9! FIGURE*4:*EXTENSION*OF*THE*FOOD*PURCHASING*PROGRAM*(PAA)*IN*2014!................................................................................!12! FIGURE*5:*SIMPLIFIED*VALUE*CHAIN!.....................................................................................................................................................!16! FIGURE*6:*FIELD*STUDY*AREAS*OF*VALUE*CHAIN*A*(COFFEE)!.............................................................................................................!21! FIGURE*7:*FIELD*STUDY*AREAS*OF*VALUE*CHAIN*B*(HORTICULTURE)!.................................................................................................!23! FIGURE*8:*RESEARCH*DESIGN!...............................................................................................................................................................!26! FIGURE*9:*SIX*ANALYTICAL*STEPS*OF*THE*VALUE*CHAIN*ANALYSIS*FRAMEWORK!.................................................................................!27! FIGURE*10:*THE*PRODUCTION*PROCESS*USED*IN*ECONOMIC*ANALYSIS!.............................................................................................!31! FIGURE*11:*BOX*OF*EQUATIONS*FOR*PRODUCTION*ACCOUNTS!.........................................................................................................!32! FIGURE*12:*BOX*OF*DERIVED*NVA*INCOMES*AND*PROFITS*EQUATION!..............................................................................................!33! FIGURE*13:*EXAMPLE*OF*VALUE*CHAIN*ACCOUNTS!..............................................................................................................................!34! FIGURE*14:*THE*MARKET*MAP*EXAMPLE*PROPOSED!..........................................................................................................................!35! FIGURE*15:*MAP*OF*THE*COFFEE*PRODUCING*REGIONS,*COFFEA*ARABICA*AND*COFFEA)CANEPHORA!.............................................!42! FIGURE*16:*TOTAL*COFFEE*(OF*ALL*SORTS)*EXPORTS*EXPRESSED*IN*THOUSAND*BAGS*OF*60*KG*BY*MAJOR*EXPORTING*COUNTRIES*IN* THE*PERIOD*OF*2010*TO*2013!.................................................................................................................................................!43! FIGURE*17:*COFFEE*GROSS*REVENUE*SHARE*IN*PERCENTAGE*BY*PRODUCING*REGION*AND*THE*STATE*RIO*DE*JANEIRO*HIGHLIGHTED* FOR*SPECIAL*COMPARISON!.........................................................................................................................................................!44! FIGURE*18:*BIANNUAL*CYCLE*OF*THE*BRAZILIAN*COFFEE*IN*THE*CALENDAR*YEARS*FROM*1990*TO*2012!......................................!45! FIGURE*19:*RIO*DE*JANEIRO’S*TOTAL*CROP*AREA*(HA)*AND*YIELD*(BAGS*60KG/HA)*FROM*2001*TO*2015!...................................!45! FIGURE*20:*EVOLUTION*OF*THE*HARVESTED*AREA*AND*PRODUCTION*IN*THE*STATE*OF*RIO*DE*JANEIRO*(1990;2013)!................!46! FIGURE*21:*LOCATION*OF*THE*COFFEE*PRODUCTION*ACTIVITY*IN*THE*MUNICIPALITIES*OF*THE*STATE*RIO*DE*JANEIRO!...................!47! FIGURE*22:*POSITIVE*CORRELATION*BETWEEN*ANNUAL*AVERAGE*PRODUCTION*(TOTAL*COFFEE*BAGS*OF*60KG)*AND*PRODUCTION* ;1 YIELD*OF*BAGS/HA*YEAR !..........................................................................................................................................................!50! FIGURE*23:*AGE*DISTRIBUTION*BY*MICRO;BASIN*AND*BY*COMMUNITY*WITH*T;TEST*ESTIMATED*MEANS!........................................!51! FIGURE*24:*MARITAL*STATUS*BY*MICRO;BASIN!...................................................................................................................................!52! FIGURE*25:*PROFESSION*TOTAL*DISTRIBUTION*AND*RESIDUAL*BY*MICRO;BASIN!................................................................................!53! FIGURE*26:*HOUSEHOLD*SIZE*BY*COMMUNITY*SHOWING*T;TEST*ESTIMATED*MEANS*AND*PREDICTED*HOUSEHOLD*SIZE*VS.*AGE*FOR* DEGREDO*AND*SANTA*CRUZ*I.!..................................................................................................................................................!54! FIGURE*27:*HOUSEHOLD*INCOME*BY*COMMUNITY*(RIGHT)*AND*DOTS*BY*HOUSEHOLD*SIZE*(LEFT)!..................................................!55! FIGURE*28:*DISTRIBUTION*OF*FARM*SIZE.*NOT*UNIFORMLY*DISTRIBUTED*(KOLMOGOROV;SMIRNOV,*P*<*0.001)!........................!56! FIGURE*29:*POSITIVE*CORRELATION*BETWEEN*FARM*SIZE*(HA)*AND*CULTIVATED*AREA*(HA)!............................................................!58! FIGURE*30:*WORLD*COFFEE*CONSUMPTION*IN*PERCENTAGE*BY*COUNTRY*OR*GROUP*IN*2014!.......................................................!59! FIGURE*31:*PRICES*IN*REAIS*(R$)*PAID*TO*INTERVIEWED*FARMERS*PER*KILOGRAM*(KG)*OF*GREEN*COFFEE*IN*2012!....................!62! FIGURE*32:*PRICES*IN*REAIS*(R$)*PAID*TO*INTERVIEWED*FARMERS*PER*KILOGRAM*(KG)*OF*GREEN*COFFEE*IN*2013!....................!62! FIGURE*33:*WORK*CATEGORY*PERCENTAGE*IN*RESPONDENT*PRODUCERS!.........................................................................................!65! FIGURE*34:*FARMER’S*PERCEPTION*FREQUENCY*IN*RELATION*TO*THE*INSTITUTIONAL*SUPPORT!.......................................................!70! FIGURE*35:*COMMERCIALIZATION*CHANNEL*BY*THE*COFFEE*GROWERS*RESPONDENTS!.....................................................................!71! FIGURE*36:*MARKETPLACE*DISTORTIONS*AND*OPPORTUNITIES*IN*THE*VALUE*CHAIN*A!....................................................................!72! FIGURE*37:*COFFEE*AGRO;INDUSTRY*VALUE*CHAIN!.............................................................................................................................!73! FIGURE*38:*VALUE*CHAIN*A*(COFFEE)*FLOW;CHART!..........................................................................................................................!74! FIGURE*39:*COFFEE*POST;HARVEST*PROCESSING*CHART!.....................................................................................................................!76! FIGURE*40:*HARVEST*TECHNOLOGY*OF*THE*COFFEE*GROWERS!..........................................................................................................!77! FIGURE*41:*POST;HARVEST*PROCESSING*PREDOMINANCE*AMONG*COFFEE*GROWERS!.....................................................................!78! FIGURE*42:*DRYING*TECHNOLOGY*PREDOMINANCE*OF*THE*COFFEE*GROWERS!..................................................................................!79! FIGURE*43:*MILLING*DISTRIBUTION*AMONG*THE*COFFEE*GROWERS!..................................................................................................!81! ! iv! FIGURE*44:*QUANTIFICATION*OF*PHYSICAL*FLOWS*IN*THE*VALUE*CHAIN*A*(COFFEE)!.......................................................................!82! FIGURE*45:*INPUT;OUTPUT*MATRICES*OF*A*REPRESENTATIVE*PRODUCER*OF*STUDIED*COMMUNITY*AND*MICRO;BASIN!.................!84! FIGURE*46:*NET*VALUE*ADDED*(NVA)*SHARE*AMONG*VALUE*CHAIN*A*AGENTS!..............................................................................!90! FIGURE*47:*VALE*ADDED*DISTRIBUTION*SHARE*IN*VALUE*CHAIN*A!..................................................................................................!95! FIGURE*48:*MARKET*MAP*FRAMEWORK*VALUE*CHAIN*COFFEE!........................................................................................................!96! FIGURE*49:*TOTAL*VEGETABLE*PRODUCTION*(AVERAGE*TONNES)*WORLDWIDE*IN*2013!................................................................!98! FIGURE*50:*TOTAL*BRAZILIAN*VEGETABLE*PRODUCTION*IN*MILLIONS*OF*TONNES*(PRIMARY*AXIS*IN*BLUE);*TOTAL*HARVEST*AREA*IN* THOUSANDS*OF*HECTARES*(HA)*(SECONDARY*AXIS*IN*GREEN)*OVER*THE*PERIOD*FROM*2010*TO*2013!..............................!99! FIGURE*51:*GREEN*BELT*OF*VEGETABLES*OF*THE*CAPITAL*OF*RIO*DE*JANEIRO!................................................................................!101! FIGURE*52:*LANDSLIDE*ON*THE*RURAL*AREA*IN*NOVA*FRIBURGO*THREE*YEARS*AFTER*THE*DISASTER!...........................................!103! FIGURE*53:*POSITIVE*CORRELATION*BETWEEN*TOTAL*VEGETABLE*PRODUCTION*AND*THE*YIELD*(TONNES*PER*HECTARE)*IN*THE* HORTICULTURE*VALUE*CHAIN!..................................................................................................................................................!104! FIGURE*54:**RELATION*OF*AGE*BY*COMMUNITY*WITH*CORRESPONDENT*MEDIANS*BOXES!.............................................................!106! FIGURE*55:*DIFFERENT*CATEGORIES*OF*OCCUPATION*OF*THE*HOUSEHOLDS*INTERVIEWED!............................................................!107! FIGURE*56:**TYPE*OF*PROPERTY*BY*COMMUNITY,*HIGHLIGHTING*THE*CONDITION*OF*“GRANTED”!...............................................!109! FIGURE*57:*FARM*SIZE*(HA)*BY*MICRO;BASIN*REVEALING*UNEQUAL*MEDIANS*AND*SIGNIFICANT*DIFFERENCE!.............................!110! FIGURE*58:*POSITIVE*CORRELATION*BETWEEN*FARM*SIZE*(HA)*AND*CULTIVATED*AREA*(HA)!.........................................................!111! FIGURE*59:*MAIN*VEGETABLE*SUPPLIER*MUNICIPALITIES*OF*THE*CEASA;RJ!.................................................................................!116! FIGURE*60:*CEASA*“GRANDE;RIO”*AND*“AVENIDA*BRASIL”*(BR101)*LOCATION*SURROUNDED*BY*THE*URBAN*CONCENTRATION !.................................................................................................................................................................................................!118! FIGURE*61:*INADEQUATE*WASTE*DISPOSAL*AT*THE*PARKING*PLACE*AND*LACK*OF*REFRIGERATION*FOR*VEGETABLES* COMMERCIALIZED*IN*CEASA;RJ*GRANDE*RIO!......................................................................................................................!119! FIGURE*62:*TUTTI;FRUTTI*RETAILER*CHAIN*CENTER*OF*CITY*NOVA*FRIBURGO!................................................................................!122! FIGURE*63:*STREET*MARKET*IN*THE*“ZONA*SUL”*AREA!...................................................................................................................!122! FIGURE*64:*GOVERNANCE*SATISFACTION*OF*RESPONDENT*FARMERS*VALUE*CHAIN*B!....................................................................!125! FIGURE*65:*COMMERCIALIZATION*CHANNEL*OF*THE*INTERVIEWED*FARMERS*VALUE*CHAIN*B!.......................................................!129! FIGURE*66:*SALE*PRICE*DISTRIBUTION*AMONG*VALUE*CHAIN*B*AGENTS*FOR*THE*STUDIED*VEGETABLES!......................................!132! FIGURE*67:*MINI*PROCESSED*CAULIFLOWER*FROM*VALE*VERDE!.....................................................................................................!133! FIGURE*68:*INVOLVED*AGENTS*IN*THE*DISTRIBUTION*OF*VEGETABLES*(EXCEPT*LEAF*VEGETABLES)*IN*THE*DIFFERENT* COMMERCIALIZATION*CHANNELS*A*AND*B.!...........................................................................................................................!134! FIGURE*69:*SET*BOUNDARY*OF*VALUE*CHAIN*B*–*HORTICULTURE!.................................................................................................!135! FIGURE*70:*CATEGORIES*OF*FARMERS*ACCORDING*TO*THE*CROP*TYPE!...........................................................................................!139! FIGURE*71:*INADEQUATE*WOODEN*BOXES*FOR*TOMATOES*AT*THE*WHOLESALE*IN*NOVA*FRIBURGO;*PLASTIC*BOXES*FOR*PARSLEY* AT*THE*PRODUCER*SALE*IN*SANTA*CRUZ!................................................................................................................................!140! FIGURE*72:*PHYSICAL*FLOWS*IN*THE*VALUE*CHAIN*B*;*HORTICULTURE!...........................................................................................!144! FIGURE*73:*INPUT;OUTPUT*MATRICES*OF*ONE*REPRESENTATIVE*PRODUCER*FOR*VALUE*CHAIN*B!.................................................!146! FIGURE*74:*NET*VALUE*ADDED*IN*THE*HORTICULTURE*VALUE*CHAIN!..............................................................................................!151! FIGURE*75:*VALUE*ADDED*DISTRIBUTION*SHARE*IN*THE*VALUE*CHAIN*B!.........................................................................................!155! FIGURE*76:*MARKET*MAP*FRAMEWORK*VALUE*CHAIN*B!...............................................................................................................!156! FIGURE*77:**MILLED*COFFEE*BAGS*(LEFT);*MILLING*PROCESS*(RIGHT)!............................................................................................!203! FIGURE*78:*COFFEE*BRANDS*OF*VARRE;SAI!......................................................................................................................................!203! FIGURE*79:*COOPERCANOL’S*PROCESSING*INSTALLATION*(LEFT);*COGEM*MEETING*IN*ITAPERUNA*(RIGHT)!........................!203! FIGURE*80:*CONCRETE*YARDS*FOR*DRYING*COFFEE*(LEFT);*COFFEE*BUSH*ABOUT*TO*RIPEN*(RIGHT)!.............................................!203! FIGURE*81:*TOMATO*HARVESTING*(LEFT);*BOXED*TOMATOES*(RIGHT)!...........................................................................................!204! FIGURE*82:*AGROECOLOGY*TRANSITION*IN*TOMATOES*(LEFT);*LETTUCE*READY*TO*DISTRIBUTION*(RIGHT)!..................................!204! FIGURE*83:*BIOLOGICAL*BEETROOT*(LEFT);*HYDROPONIC*LETTUCE*(RIGHT)!...................................................................................!204! FIGURE*84:*COGEM*MEETING*IN*RIO*GRANDE*COMMUNITY*(LEFT);*“EMPTY”*MERCADO*DO*PRODUTOR*(RIGHT)!..................!204! ! v! LIST&OF&TABLES& TABLE*1:*FAMILY*FARMING*PREVALENCE*IN*RIO*DE*JANEIRO*STATE!.....................................................................................................!9! TABLE*2:*SAMPLING*DESIGN*FOR*THE*FIELDWORK!...............................................................................................................................!37! TABLE*3:*TOTAL*COFFEE*PRODUCTION*EXPRESSED*IN*THOUSAND*BAGS*OF*60KG*BY*MAJOR*EXPORTING*AND*PRODUCER*COUNTRIES* (2011;2014)!............................................................................................................................................................................!41! TABLE*4:*TOTAL*COFFEE*PRODUCTION*IN*THE*PERIOD*2011;2015*EXPRESSED*IN*THOUSAND*BAGS*OF*60KG!................................!42! TABLE*5:*TOTAL*EXPORT*QUANTITY,*COFFEE*GROSS*REVENUE*AND*AVERAGE*PRICE*OF*THE*COFFEE*BAG!..........................................!43! TABLE*6:*RIO*DE*JANEIRO’S*COFFEE*PRODUCTION*IN*2013!................................................................................................................!47! TABLE*7:*PRODUCTION*IN*BAGS*OF*60KG*BY*COMMUNITY*AND*BY*MICRO;BASIN*(BIANNUAL*CYCLE*2012;2013)!.......................!49! TABLE*8:*COMMUNITY*AND*MICRO;BASIN*RELATION*(VALUE*CHAIN*A)!...........................................................................................!50! TABLE*9:*GROUP*OF*AGE*IN*THE*OBSERVED*POPULATION*(VALUE*CHAIN*A)!.....................................................................................!51! TABLE*10:*LITERACY*LEVEL*OF*HOUSEHOLDS*BY*MICRO;BASIN!............................................................................................................!53! TABLE*11:*HOUSEHOLD*SIZE*RANGE*AND*FREQUENCY*WITHIN*OBSERVED*POPULATION!....................................................................!54! TABLE*12:*FARM*SIZE*RANGE*OF*THE*OBSERVED*POPULATION*IN*RAW*COUNT,*RELATIVE*AND*ACCUMULATIVE*FREQUENCY!..........!57! TABLE*13:*DESTINATION*OF*THE*BRAZILIAN*COFFEE*EXPORTS*BY*TYPE*OF*COFFEE*EXPRESSED*IN*60KG*BAGS*IN*2014!...................!59! TABLE*14:*DEMAND*FOR*VALUE*CHAIN*OUTPUTS*–*ROASTERS*PRODUCTS,*PRICES*AND*DEMAND*IN*2014!.....................................!61! TABLE*15:*OFFICIAL*BRAZILIAN*COFFEE*GRADING*SYSTEM!..................................................................................................................!63! TABLE*16:*BRAZILIAN*COFFEE*LEGISLATION!..........................................................................................................................................!64! TABLE*17:*FARMER’S*PERCEPTION*REGARDING*THE*ASSOCIATIONS*AND*COOPERATIVES*IN*VARRE;SAI!...........................................!68! TABLE*18:**FUNCTIONAL*ANALYSIS*TABLE:*COFFEE*CHAIN*(A)!.............................................................................................................!79! TABLE*19:*SUPPLY*UTILIZATION*ACCOUNT*(SUA)*COFFEE!.................................................................................................................!81! TABLE*20:*INPUT;OUTPUT*QUANTITIES*NEED*TO*PRODUCE*1*HA*OF*COFFEE*IN*THE*STUDIED*AREA!..................................................!83! TABLE*21:*TOTAL*OUTPUT*VALUE*OF*VALUE*CHAIN*A*–*PRODUCERS!...............................................................................................!86! TABLE*22:*TOTAL*OUTPUT*VALUE*OF*VALUE*CHAIN*A*–*UPSTREAM*AGENTS!...................................................................................!87! TABLE*23:*INTERMEDIATE*INPUTS*OUTSIDE*THE*VALUE*CHAIN*(IIOC)*BY*FARMERS!.........................................................................!87! TABLE*24:*GROSS*VALUE*ADDED*IN*VALUE*CHAIN*A*COFFEE!............................................................................................................!88! TABLE*25:*NET*VALUE*ADDED*NVA*IN*VALUE*CHAIN*A!....................................................................................................................!89! TABLE*26:*REMUNERATION*OF*WAGE*IN*VALUE*CHAIN*A,*EXPRESSED*IN*REAIS*(R$)!.......................................................................!91! TABLE*27:*OPERATIONAL*SERVICES*COST*IN*VALE*CHAIN*A,*EXPRESSED*IN*REAIS*(R$)!....................................................................!91! TABLE*28:*INTEREST*RATE*CALCULATION!..............................................................................................................................................!92! TABLE*29:*ANNUAL*INTERESTED*COST*(INT)*PRODUCERS*VALUE*CHAIN*A!.......................................................................................!92! TABLE*30:*TAXES*IN*VALUE*CHAIN*A!...................................................................................................................................................!93! TABLE*31:*INCOME*ACCOUNT*OF*VALUE*CHAIN*A!..............................................................................................................................!94! TABLE*32:*CAUSE*AND*EFFECT*OF*THE*BOTTLENECKS*IN*THE*COFFEE*SECTOR*IN*THE*NORTHWEST*REGION*OF*RJ!...........................!97! TABLE*33:*PRODUCTION*OF*VEGETABLES*IN*BRAZIL!............................................................................................................................!99! TABLE*34:*STUDIED*VEGETABLES*IN*RIO*DE*JANEIRO*STATE!............................................................................................................!100! TABLE*35:*STUDIED*VEGETABLES*PRODUCTION*IN*NOVA*FRIBURGO*IN*2013!................................................................................!102! TABLE*36:*ANNUAL*MEAN*PRODUCTION*AND*TOTAL*PRODUCTION*OF*STUDIED*VEGETABLES*IN*THE*VALUE*CHAIN*B!.................!104! TABLE*37:*COMMUNITY*AND*MICRO;BASIN*RELATION*(VALUE*CHAIN*B)!.....................................................................................!105! TABLE*38:*GROUP*OF*AGE*IN*THE*OBSERVED*POPULATION*(VALUE*CHAIN*B)!................................................................................!105! TABLE*39:*DISTRIBUTION*OF*GENDER*BY*COMMUNITY!.....................................................................................................................!106! TABLE*40:*LITERACY*LEVEL*BY*MICRO;BASIN!.....................................................................................................................................!108! TABLE*41:*INCOME*RANGE*FREQUENCY*BY*COMMUNITY*AND*IN*THE*OBSERVED*POPULATION!......................................................!108! TABLE*42:*PROPERTY*TYPE*AT*VALUE*CHAIN*B!................................................................................................................................!110! TABLE*43:*FREQUENCY*OF*SUPPLY*BY*DIFFERENT*DISTRIBUTION*CENTERS*TO*THE*MAIN*COMMERCIALIZATION*CHANNELS!..........!114! TABLE*44:*LOCATIONS*OF*VEGETABLES*AND*FRUITS*COMMERCIALIZATION*BY*CONSUMER*PREFERENCE!........................................!115! TABLE*45:*COMMERCIALIZATION*OF*PRODUCE*IN*CEASA;RJ*UNITS*IN*THE*PERIOD*2013/2014!...............................................!116! TABLE*46:*RANKING*OF*THE*THREE*LARGEST*SUPERMARKET*CHAINS*IN*RIO*DE*JANEIRO!...............................................................!121! ! vi! TABLE*47:*FARMER’S*ASSOCIATIONS*IN*THE*VALUE*CHAIN*B!..........................................................................................................!126! TABLE*48:*SUPPLY*ALONG*THE*YEAR*OF*THE*STUDIED*VEGETABLES*AT*THE*CEASA*WHOLESALE!...................................................!127! TABLE*49:*PRICES*TENDENCY*OF*THE*STUDIED*VEGETABLES*ALONG*THE*YEAR*AT*THE*CEASA*WHOLESALE!..................................!127! TABLE*50:*SALE*PRICE*AT*THE*PRODUCER*LEVEL!................................................................................................................................!130! TABLE*51:*SALE*PRICE*(R$/KG)*PER*PRODUCE*OF*UPSTREAM*AGENTS*VALUE*CHAIN*B!..................................................................!131! TABLE*52:*CHARACTERISTICS*OF*THE*STUDIED*VEGETABLES!.............................................................................................................!138! TABLE*53:*FUNCTIONAL*ANALYSIS*TABLE*VALUE*CHAIN*B*;*HORTICULTURE!.....................................................................................!141! TABLE*54:*SUPPLY*UTILIZATION*ACCOUNT*(SUA)*HORTICULTURE!.................................................................................................!143! TABLE*55:*INPUT;OUTPUT*QUANTITIES*NEED*TO*PRODUCE*1*HA*OF*VEGETABLES*IN*THE*STUDIED*AREA!.......................................!145! TABLE*56:*INPUT;OUTPUT*MATRICES*TABLE*BY*COMMUNITY*IN*VALUE*CHAIN*B!..........................................................................!145! TABLE*57:*TOTAL*OUTPUT*VALUE*AT*THE*PRODUCTION*LEVEL*;*VALUE*CHAIN*B!............................................................................!147! TABLE*58:*TOTAL*OUTPUT*VALUE*UPSTREAM*AGENTS*VALUE*CHAIN*B!..........................................................................................!148! TABLE*59:*GROSS*VALUE*ADDED*(GVA)*OF*THE*AGENTS*IN*THE*VALUE*CHAIN*B!.........................................................................!149! TABLE*60:*NET*VALUE*ADDED*VALUE*CHAIN*B!................................................................................................................................!150! TABLE*61:*INTERESTS*OF*FIXED*ASSETS*AND*EVENTUAL*MAINTENANCE*COST*IN*VALUE*CHAIN*B!...................................................!153! TABLE*62:*ANNUAL*PRODUCTION*TAXES*IN*THE*VALUE*CHAIN*B!.....................................................................................................!154! TABLE*63:*DATA*REQUIREMENTS*USED*FOR*VALUE*CHAIN*ANALYSIS*IN*THIS*STUDY,*WHEN*APPLICABLE!.......................................!178! TABLE*64:*IIOC*–*INTERMEDIATE*INPUT*COSTS*IN*VALUE*CHAIN*B*IN*TOTAL*REAIS*(R$)*FOR*EACH*REPRESENTATIVE*PRODUCER*OF* COMMUNITY*AND*OR*MICRO;BASIN!.......................................................................................................................................!205! TABLE*65:*WAGE*ACCOUNT*IN*THE*VALUE*CHAIN*HORTICULTURE!..................................................................................................!206! TABLE*66:*INCOME*ACCOUNT*EXPRESSED*IN*PROFIT*OR*LOSS*IN*THE*HORTICULTURE*VALUE*CHAIN!..............................................!207! TABLE*67:*SWOT*ANALYSIS*–*NOVA*FRIBURGO*CONVENTIONAL*FARMERS!...................................................................................!208! * * ! * vii! LIST&OF&ABBREVIATIONS&AND&ACRONYMS& & Original&Name& English&translation& ABCSEM& Associação*Brasileira*do*Comércio*de*Sementes*e*Mudas* ABIC& Abio& ANVISA& ASPA& Associação*Brasileira*da*Indústria*de*Café* Associação*de*Agricultores*Biológicos*do*Estado*do*Rio*de* Janeiro** Agência*Nacional*de*Vigilância*Sanitária* Acompanhamento*Sistemático*da*Produção*Agrícola* BNDS& Banco*Nacional*de*Desenvolvimento*Econômico*e*Social* C" CCCRJ& CEAGESP& Equivalent*annual*cost*of*the*asset* Centro*de*Comércio*do*Café*do*Rio*de*Janeiro* Companhia*de*Entrepostos*e*Armazéns*Gerais*de*São*Paulo* CEASACRJ& Centrais*de*Abastecimento*do*Estado*do*Rio*de*Janeiro* CeCafé& Conselho*dos*exportadores*de*café*do*Brasil* CEPERJ& Fundação*Centro*Estadual*de*Estatísticas,*Pesquisas*e* Formação*de*Servidores*Públicos*do*Rio*de*Janeiro* CETCAF& Centro*de*Desenvolvimento*Tecnológico*do*Café* Cf" CNPJ& CNRD& COGEM& Consumption*of*fixed*capital* Cadastro*Nacional*da*Pessoa*Jurídica* Centers*for*Natural*Resources*and*Development* Comitês*Gestores*de*Micro*bacias* COMPERJ& Complexo*Petroquímico*do*Rio*de*Janeiro* Conab& CONDRAF& Companhia*Nacional*do*Abastecimento* Conselho*Nacional*de*Desenvolvimento*Rural*Sustentável* CONSEA& Conselho*Nacional*de*Segurança*Alimentar*e*Nutricional* COOPERCANOL& Cooperativa*de*Produtores*de*Café*do*Noroeste*Fluminense* COPLA& CREACRJ& Cwb& DAP& DRS& Comercio*y*Pobreza*en*Latinoamérica* Conselho*Regional*de*Engenharia*e*Agronomia*do*Rio*de* Janeiro* High;altitude*tropical*climate* Declaração*de*Aptidão*ao*Pronaf* Desenvolvimento*Rural*Sustentável* DTE& EMATER& Desenvolvimento*Territorial*Endógeno* Empresa*de*Assistência*Técnica*e*Extensão*Rural* EMBRAPA& Empresa*Brasileira*de*Pesquisa*Agropecuária* & * Brazilian*Commerce*Association*of* Seeds*and*Seedlings* Brazilian*Coffee*Industry*Association* Biological*Farmers*Association*of*the* State*of*Rio*de*Janeiro* *National*Health*Surveillance*Agency* Systematic*Farm*Production* monitoring* National*Bank*for*Economic*and* Social*Development* * Coffee*Trade*Center*in*Rio*de*Janeiro* Company*warehouses*and*General* Warehouses*of*São*Paulo* State's*Supply*Centers*of*Rio*de* Janeiro* Council*of*the*Brazilian*Coffee* Exporters* State*Center*Foundation*for* Statistics,*Research*and*Training*of* Civil*Servants*of*Rio*de*Janeiro* *Coffee*Technology*Development* Center** * National*Register*of*Legal*Entities* * Management*Committees*of*Micro;* basins* Petrochemical*Complex*of*Rio*de* Janeiro* National*Supply*Company* National*Council*for*Sustainable*Rural* Development* National*Council*for*Food*and* Nutritional*Security* Coffee*Growers'*Cooperative*of*the* Fluminense’s*Northwest* Trade*and*Poverty*in*Latin*America* Regional*Council*of*Engineering*and* Agronomy*of*Rio*de*Janeiro* * Statement*of*Aptitude*to*the*Pronaf** Sustainable*Rural*Development* Strategy* Endogenous*Territorial*Development* Technical*Assistance*and*Rural* Extension*Company* Brazilian*Agricultural*Research* Corporation** * ! viii! EMBRAPAC NPTA& f" FAERJ& Núcleo*de*Pesquisa*e*Treinamento*de*Agricultores* FAO& FAOSTAT& FNDE& Food*and*Agriculture*Organization*of*the*United*Nations* Statistics*Division*of*FAO* Fundo*Nacional*de*Desenvolvimento*da*Educação* GDP& GEF& GTZ& Gross*domestic*product* Global*Environmental*Facility** Deutsche*Gesellschaft*für*Technische*Zusammenarbeit* GVA& Ha& HDI& IBELGA& IBGE& Gross*value*added* Hectare* Human*Development*Index** Instituto*Bélgica*em*Nova*Friburgo* Instituto*Brasileiro*de*Geografia*e*Estatística** ICMS& Imposto)sobre)Circulação)de)Mercadorias)e)Serviços) ICO& IFAD& IIIC& IIIOC& IN& INCRA& International*Coffee*Organization* International*Fund*for*Agricultural*Development** Intermediate*Inputs*Produced*Inside*the*Value*chain* Intermediate*Inputs*Outside*the*Value*Chain** Instrução*Normativa* Instituto*Nacional*de*Colonização*e*Reforma*Agrária* INEA& INMETRO& Instituto*Estadual*do*Ambiente* Instituto*Nacional*de*Metrologia,*Qualidade*e*Tecnologia* INT& INTECRAL& Interest*component* Integrated*Eco*Technologies*and*Services*for*a*Sustainable* Rural*Rio*de*Janeiro* Thousand* Kilogram* Kilometers* Ministério*da*Agricultura,*Pecuária*e*do*Abastecimento** K& Kg& Km& MAPA& MB& MDA& MDS& MTE& MTECSIT& n" NCA& NDC& NGO& NVA& ODI& OECD& OPAC& ! Inflation*rate* Federação*da*Agricultura*do*Estado*do*Rio*de*Janeiro* micro*bacia* Ministério*do*Desenvolvimento*Agrário* Ministério*do*Desenvolvimento*Social*de*do*Combate*à* Fome* Ministério*do*Trabalho*e*Emprego* Secretaria*de*Inspeção*do*Trabalho* Period*of*the*economic*life*of*the*asset* National*Coffee*Association*USA* Non;communicable*diseases** Non;governmental*organization* Net*value*added* Overseas*Development*Institute* Organization*for*Economic*Co;operation*and*Development* Organismo*Participativo*de*Avaliação*da*Conformidade** Center*for*Research*and*Farmers* Training* * Agriculture*Federation*of*the*State* Rio*de*Janeiro* * * National*Fund*for*the*Development* of*Education** * * German*Agency*for*Technical* Cooperation* * * * Institute*Belgium*in*Nova*Friburgo* Brazilian*Institute*of*Geography*and* Statistics* Merchandise*and*Services*Circulation* Tax*–*VAT** * * * * Normative*Ruling* National*Institute*of*Colonization*and* Agrarian*Reform* State*Environmental*Institute* National*Institute*of*Metrology,* Quality*and*Technology* * * * * * Ministry*of*Agriculture,*Livestock*and* Supply* Micro*basin* Ministry*of*Agrarian*Development* Ministry*of*Social*Development*and* Hunger*Eradication** Ministry*of*Labor*and*Employment* Department*of*Labor*Inspection* * * * * * * * Participatory*Body*for*Conformity* Assessment** ix! PAA& PAM& PEM& Programa*de*Aquisição*de*Alimentos* Produção*Agrícola*Municipal* Plano*Executivo*da*Micro*bacia* PESAGRO& Empresa*de*Pesquisa*Agropecuária*do*Estado*do*Rio*de* Janeiro* Prefeitura*Municipal*de*Nova*Friburgo* Programa*Nacional*de*Alimentação*Escolar* Política*Nacional*de*Assistência*Técnica*e*Extensão*Rural* PMNF& PNAE& PNATER& PNDRSS& Plano*Nacional*de*Desenvolvimento*Rural*Sustentável*e* Solidário* PNUD& Programa)das)Nações)Unidas)para)o)Desenvolvimento) Po" PROAGRO& Pronaf& Purchasing*price*of*the*asset* Programa*de*Garantia*da*Atividade*Agropecuária** Programa)Nacional)de)Fortalecimento)da)Agricultura) Familiar) Programa*Nacional*de*Assistência*Técnica*e*Extensão*Rural* na*Agricultura*Familiar*e*na*Reforma*Agrária* Pronater& PRR& r" R$& RJ& s" SDS& SEABRAECRJ& SEAPEC& SeinpCCEASA& SIMAC PESAGRO& SisOrg& SNA& SPG& SUA& SWOT& UN& UNSTATS& US$& VA& VC& VCA& WHO& ** ! Programa*Rio*Rural* Interest*rate* Reais* Estado*do*Rio*de*Janeiro* Risk*factor*premium* Superintendência*do*Desenvolvimento*Sustentável* Serviço*Brasileiro*de*Apoio*às*Micro*e*Pequenas*Empresas* no*Rio*de*janeiro* Secretaria*de*Estado*de*Agricultura*e*Pecuária*do*Rio*de* Janeiro* Setor*de*Informação*de*Preços*da*CEASA* Sistema*de*Informação*do*Mercado*Agrícola* Sistema*Brasileiro*de*Avaliação*da*Conformidade*Orgânica** System*of*National*Accounts** Sistema*Participativo*de*Garantia** Supply*Utilization*Account* Strengths,*weaknesses,*opportunities*and*threats* United*Nations* United*Nations,*Statistical*Division** US*Dollar* Value*added* Value*chain* Value*chain*analysis* World*health*organization* Food*Purchasing*Program* Municipal*Agricultural*Production* Executive*Plan*of*the*Micro; watershed* Agricultural*Research*Company*of*the* State*of*Rio*de*Janeiro* Nova*Friburgo*City*Hall* National)School)Feeding)Programme)) National*Technical*Assistance*and* Rural*Extension*Policy* National*Plan*for*the*Rural* Sustainable*Development*and* Solidarity* UNDP*;*United*Nations*Development* Programme* * Farm*Activity*Guarantee*Program* National*Program*for*the* Strengthening*of*Family*Farming** National*Programme*of*Technical* Assistance*and*Rural*Extension*in* Family*Farming*and*Agrarian*Reform* Program*Rio*Rural** * Brazilian*Real* Rio*de*Janeiro*State* * Sustainable*Development*Office** Service*Micro*and*Small*Companies* of*the*State*of*Rio*de*Janeiro** Secretariat*of*Agriculture*and* Livestock*of*Rio*de*Janeiro* Price*Information*Sector*of*CEASA* Agricultural*Market*Information* System* Brazilian*System*for*Organic* Conformity*Assessment* * Participatory*Guarantee*System* * * * * * * * * * * x! ABSTRACT& The* Fluminense’s* agricultural* production* isn’t* enough* to* meet* the* current* demand,* whether* in* terms*of*quantity*or*quality.*It*is*of*most*importance*to*organize*the*commercialization*efficiently* and* to* enable* better* access* to* the* markets* to* the* smallholder,* which* undergoes* a* myriad* of* issues* in* this* regard.* Additionally,* there* is* a* need* to* understand* the* value* chain* as* a* system* engaged* in* the* local* sustainable* development.* The* value* chain* analysis* can* detect* such* misalignments* and* underperformance* issues.* This* research* studied* two* value* chains* in* Rio* de* Janeiro:* horticulture* in* Mountain* Region* and* coffee* in* the* Northwest* Region.* The* aim* was* to* identify*the*main*bottlenecks*and*provide*insights*into*the*decision;making*process.*The*analysis* identified*that*the*technological*pattern*and*the*coffee*quality*is*low.*For*the*upgrading*process,* a* minimum* threshold* of* technology* is* required.* Otherwise,* the* cost* of* production* increases.* Trading* options* are* few* since* the* roast* industry* has* shrunk* within* the* State* Rio* de* Janeiro.* Institutional* support* has* alleviated* some* of* the* critical* points.* Nevertheless,* community* disorganization*makes*difficult*the*government*action*and*diminishes*the*capacity*of*adaptation* to* the* changes* of* the* coffee* market.* Moreover,* the* analysis* detected* an* unfair* distribution* of* value* added* in* the* horticulture* chain.* At* one* side,* the* CEASA* enhances* the* competition* and* squeezes*other*agents*operating*at*this*pricing*system.*On*the*other*hand,*the*retail*sector*grabs* nearly*90%*of*the*value*added,*by*selling*to*higher*purchasing*power*demand.*There*is*a*lack*of* coordination* among* agents,* where* the* producer* is* the* most* jeopardized.* The* disaster* of* 2011* was* a* milestone* for* government* action* and* community* organization.* Changing* perspectives* of* production,* providing* means* to* add* value,* and* facilitating* the* direct* sale* to* detach* from* the* CEASA*system*are*still*required*for*an*upgrading*process.* * Keywords:* family* farming,* value* chain* analysis,* Rio* de* Janeiro,* rural* sustainable* development,* horticulture,*coffee,*decision;making* * ! * xi! RESUMO& A*produção*agrícola*Fluminense*não*é*suficiente*para*atender*à*demanda*atual,*quer*em*termos* de* quantidade* ou* qualidade.* É* de* maior* importância* organizar* a* comercialização* de* forma* eficiente*e*permitir*um*melhor*acesso*aos*mercados*para*o*pequeno*produtor*rural,*que*enfrenta* uma*miríade*de*questões*a*este*respeito.*Além*disso,*há*uma*necessidade*de*entender*a*cadeia* de*valor*como*um*sistema*empenhado*no*desenvolvimento*sustentável*local.*A*análise*da*cadeia* de*valor*pode*detectar*tais*distorções*e*problemas*de*mau*desempenho.*Esta*pesquisa*estudou* duas* cadeias* de* valor* no* Rio* de* Janeiro:* a* horticultura* na* Região* Serrana* e* o* café* na* Região* Noroeste.*O*objetivo*foi*identificar*os*principais*gargalos*e*fornecer*compreensão*para*o*processo* de*tomada*de*decisão.*A*análise*identificou*que*o*padrão*tecnológico*e*a*qualidade*do*café*são* baixos.* Para* o* processo* de* aprimoramento,* é* necessário* um* limiar* mínimo* de* tecnologia.* Caso* contrário,* aumenta;se* custo* de* produção.* Opções* de* mercado* são* poucos,* já* que* a* indústria* cafeeira*tem*encolhido*no*Estado*Rio*de*Janeiro.*O*apoio*institucional*aliviou*alguns*dos*pontos* críticos.* No* entanto,* a* desorganização* comunitária* dificulta* a* ação* do* governo* e* diminui* a* capacidade*de*adaptação*às*mudanças*do*mercado*de*café.*Além*disso,*a*análise*detectou*uma* distribuição*iníqua*de*do*valor*agregado*na*cadeia*de*horticultura.*De*um*lado,*a*CEASA*aumenta* a*concorrência*e*restringe*outros*agentes*que*operam*neste*sistema*de*preços.*Por*outro*lado,*o* sector*varejista*retém*cerca*de*90%*do*valor*agregado,*através*da*venda*à*demanda*com*maior* poder* de* compra.* Há* uma* falta* de* coordenação* entre* os* agentes,* em* que* o* produtor* é* o* mais* prejudicado.*O*desastre*de*2011*foi*um*marco*para*a*ação*do*governo*e*organização*comunitária.* Mudar*perspectivas*de*produção,*proporcionar*meios*para*agregar*valor*e*facilitar*a*venda*direta* desvinculando;se*do*sistema*CEASA*são*ainda*necessários*para*um*processo*de*aprimoramento.* PalavrasCchave:*agricultura*familiar,*análise*de*cadeia*de*valor,*Rio*de*Janeiro,*desenvolvimento* rural*sustentável,*horticultura,*café,*tomada*de*decisão* ! xii! ZUSAMMENFASSUNG& Die* Fluminense* landwirtschaftliche* Produktion* ist* nicht* genug,* um* die* derzeitige* Nachfrage* zu* decken,* weder* in* Bezug* auf* die* Quantität,* noch* auf* die* Qualität.* Es* ist* von* außerordentlicher* Wichtigkeit,* die* Kommerzialisierung* effizient* zu* organisieren* und* für* die* Kleinbauern* einen* besseren* Zugang* zu* den* Märkten* zu* ermöglichen.* Dies* unterliegt* jedoch* unzähligen* Schwierigkeiten.*Darüber*hinaus*ist*es*notwendig,*die*Wertschöpfungskette*als*ein*System*in*der* lokalen*nachhaltigen*Entwicklung*zu*verstehen.*Die*Wertkettenanalyse*kann*solche*Verzerrungen* und* Probleme* unzureichender* Leistungen* erkennen.* Diese* Forschungsarbeit* untersucht* zwei* Produktionsketten*in*Rio*de*Janeiro:*Hortikultur*in*der*Gebirgsregion*und*Kaffee*in*der*Nordwest; Region.* Ziel* war* es,* die* wichtigsten* Engpässe* zu* identifizieren* und* Einblicke* in* den* Entscheidungsprozess* zu* gewährleisten.* Die* Analyse* identifizierte,* dass* die* technologischen* Muster* und* die* Kaffeequalität* gering* sind.* Für* den* Aufwertungsprozess* ist* ein* Mindestmaß* an* Technologie*erforderlich,*andernfalls*steigen*die*Produktionskosten.*Handelsmöglichkeiten*gibt*es* nur* wenige,* da* die* Kaffeeröst;Industrie* innerhalb* des* Staates* RJ* geschrumpft* ist.* Institutionelle* Unterstützung* hat* einige* der* kritischen* Punkte* verringert.* Dennoch* erschwert* die* Desorganisation*der*Gemeinden,*dass*die*Maßnahmen*der*Regierung*greifen*und*vermindert*die* Fähigkeit* der* Anpassung* an* die* Veränderungen* des* Kaffeemarktes.* Darüber* hinaus* erfasste* die* Analyse* eine* unfaire* Verteilung* des* Mehrwerts* in* der* Hortikultur;Kette.* Auf* der* einen* Seite* verstärkt* CEASA* den* Wettbewerb* und* drückt* andere* Agenten,* in* diesem* Preissystem* zu* operieren.* Auf* der* anderen* Seite,* schnappt* sich* der* Einzelhandelssektor* fast* 90%* der* Wertschöpfung* durch* den* Verkauf* an* die* höhere* Kaufkraft.* Es* existiert* eine* unzureichende* Koordination* zwischen* den* Agenten,* bei* dem* der* Produzent* das* höchste* Risiko* trägt.* Die* Katastrophe* von* 2011* war* ein* Meilenstein* für* die* Maßnahmen* der* Regierung* und* anderen* Institutionen.* Veränderte* Perspektiven* der* Produktion* und* die* Bereitstellung* von* Mitteln,* um* einen* Mehrwert* zu* erzielen* und* die* Erleichterung* des* direkten* Verkaufs* an* das* CEASA* System,* sind*immer*noch*für*einen*Modernisierungsprozess*erforderlich.* * Stichwörter:* Familienbetriebe,* Wertkettenanalyse,* Rio* de* Janeiro,* nachhaltige* ländliche* Entwicklung,*Hortikultur,*Kaffee,*Entscheidungsfindung* ! xiii! 1. 1.1. CHAPTER:&INTRODUCTION& Background& This*study*is*embodied*in*the*“Integrated*Eco*Technologies*and*Services*for*a*Sustainable*Rural* Rio*de*Janeiro”*(INTECRAL)*project.*The*cooperation*involves*the*State*Secretariat*of*Agriculture* and*Livestock*Program*Rio*Rural*(SEAPEC;PRR)*and*the*German*Federal*Ministry*of*Education*and* Research*(BMBF).*The*project*embraces*a*partnership*with*three*German*Universities*–*Cologne* University* of* Applied* Sciences,* Friedrich* Schiller* University* of* Jena,* and* Leipzig* University*–* and* with*the*private*sector,*mainly*German*enterprises1.*** The*overall*objective*of*the*INTECRAL’s*scientific*research*and*development*is*to*work*in*synergy* with*the*PRR.*Identifying*the*“bottlenecks”*that*hinder*the*development*and*providing*integrated* eco;technologies* and* services* for* small* farmers* would* contribute* and* support* the* sustainable* development*in*the*rural*area*of*State*Rio*de*Janeiro*(INTECRAL,*2015).*The*INTECRAL*project*is* structured*in*working*packages*as*outlined*in*Figure&1.*Figure&2*illustrates*the*field*study*areas*of* the*INTECRAL*project.** * * Figure&1:&INTECRAL&structure&and&working&packages& Source:*INTECRAL,*2015* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 1 *German* Partner* Enterprises:* BDZ* (Training* and* Demonstration* Centre* for* Decentralized* Sewage* Treatment* e.V.)* Codematix,* Geo* Data* Solutions* GmbH,* Ribeka,* SEBA* Hydrometrie* GmbH* &* Co.* KG,* Tilia* Umwelt* GmbH,* TM* Technik,* TÜV*Rheinland,*Vita*34*AG.TÜV*Rheinland,*Vita*34*AG.* ! 1! Figure&2:&&Field&study&areas&of&INTECRAL&Project& Source:*INTECRAL*2015* This*present*study*focused*on*value*chains*is*part*of*the*working*package*2*(WP2)*called*“Good* agricultural* practices* and* Participate* Planning”.* The* WP2,* addresses* adequate* agricultural* technologies,* participatory* planning* and* development* of* instruments* for* the* decision;making.* The*Value*Chain*Analysis*(VCA)*is*a*suitable*tool*for*a*holistic*approach,*comprising*the*economic,* social,* and* environmental* dimensions* inherent* in* agricultural* value* chains.* Thus,* it* provides* means* for* the* decision;making* process* in* production* chains* and* outlines* scenarios* of* intervention* targeting* specific* groups* (Bellù,* 2013).* In* this* study,* the* focus* is* on* family* farm* communities*in*the*rural*area*of*the*State*Rio*de*Janeiro.* 1.2. Problem&Statement& It* is* of* utmost* importance* to* conciliate* conservation* and* development* simultaneously* and* to* incorporate*the*dynamic*interactions*between*societies*and*the*natural*systems*(Berkes,*2004).* This*study*is*in*line*with*the*goals*of*the*INTECRAL*and*PRR*projects.*The*aim*is*the*sustainable* rural* development* with* the* preservation* of* natural* resources* and* maintenance* of* agroecosystems,* where* family* farmers* play* priority* role* in* the* natural* resources* management* (INTECRAL,* 2015).* As* the* last* agricultural* census* (IBGE,* 2006a)* revealed,* the* Brazilian* agrarian* structure* is* very* concentrated,* being* represented* most* by* family* farming.* Given* that,* the* empowerment*of*small*farmer’s*households*is*the*keystone*for*the*sustainable*development*in* ! 2! the*rural*area*of*State*of*Rio*de*Janeiro*(Programa*Rio*Rural,*2013).*One*way*to*improve*farmer’s* welfare* is* to* organize* the* commercialization* effectively,* which* enables* better* access* to* the* markets*(MDA,*2014).* Under*this*context,*the*value*chain*analysis*is*a*suitable*tool*to*detect*the*misalignments*in*value* chains* and* identify* opportunities* for* improvement* (Fearne* et* al.,* 2012;* Taylor,* 2005).* Additionally,*the*sustainable*development*of*food*value*chains*can*be*used*as*a*strategy*by*the* developing* countries* to* overcome* the* underperformance* of* food* chains.* In* this* sense,* tackling* rural* development* issues* and* at* the* same* time* assuring* that* the* value* chain* will* not* cause* the* depletion* of* natural* resources* and* will* bring* overall* benefit* for* the* society* (FAO,* 2014b).* Especially* in* developing* countries,* there* are* gaps* in* the* value* chains.* For* instance,* an* enabling* environment* capable* of* supporting* institutions* and* infrastructure* required,* availability* of* resources,* and* a* well* effective* and* efficient* coordination* among* actors* within* the* value* chain* (Trienekens,* 2011).* It* is* important* to* see* the* role* the* value* chain* can* play* on* development,* remarkably* for* target* groups* (Bellù,* 2013).* The* current* research* addresses* two* case* studies* of* food* value* chains* in* the* State* of* Rio* de* Janeiro,* following* the* Brazilian* partnership* strategy* of* development.** One* is* the* coffee* production* chain* in* the* Northwest* Region.* The* problematic* is* due* to* the* difficult*mechanization*of*the*mountain*coffee,*and*the*little*technological*pattern*in*production,* which*results*in*low*productivity*and*low*quality*of*the*final*product.*Consequently,*the*difficulty* to*adapt*to*prices*fluctuations*of*the*biannual*cycle*of*the*coffee*market*is*higher*(Andrade*et*al.,* 2002;* Andrade* &* Silva,* 2013;* Silva* &* Reis,* 2013;* FAERJ,* 1999).* Given* that,* Brazil* is* well* known* worldwide*as*the*largest*global*coffee*producer*and*exporting*country*(MAPA,*2015a),*this*reality* does*not*reflect*Rio*de*Janeiro’s*coffee*sector,*which*holds*only*0.64%*of*the*Brazilian*production* (Conab,* 2015b).* The* demand* for* coffee* in* Rio* de* Janeiro* is* much* higher* than* the* capacity* supplied* by* local* production* (Andrade* et* al.,* 2002).* There* is* an* increasing* demand* for* more* quality* and* differentiation* (Abreu* et* al.,* 2013).* Thus,* there* is* the* need* to* contribute* to* the* available*Rio*de*Janeiro’s*development*programs*for*the*coffee*sector.*Investigating*the*gaps*in* the*coffee*chain*and*also*identifying*potential*improvement*for*the*sector*are*of*great*benefit.* The*other*case*is*the*horticulture*chain*in*the*Mountain*Region.*The*challenge*is*to*overcome*the* increasing*competitiveness*of*the*sector*(Melo*&*Vilela,*2007).*There*is*an*unfair*distribution*of* value*added*(ABCSEM,*2011).*And*the*region*is*vulnerable*to*landslides*and*floods*(Coelho;Netto* et*al.,*2007;*Freitas*et*al.,*2012).*Additionally,*the*farmer*needs*to*meet*the*higher*exigencies*of* the* demand* for* healthier* products* (Carvalho* et* al.,* 2013;* Junqueira* &* Luengo,* 2000;* Alves* &* Silochi,*2010).*However,*the*supply*and*distribution*system*falls*short*of*being*efficient.*Problems* ! 3! relate*to*logistics,*quality*issues,*and*lack*of*investment.*Particularly*in*Rio*de*Janeiro,*there*is*an* insufficient* integration* of* activities,* a* deficiency* of* attendance* and* higher* operational* costs,* which*is*even*worst*in*the*case*of*farmers*(Lourenzani*&*Silva,*2004;*Mourão*&*Colombini,*2008;* Esher* Filho* &* Reis,* 2004;* Seabra* &* Marafon,* n.d.).* The* purpose,* in* this* case,* is* to* identify* the* hitches*and*set*up*strategies*to*strengthen*the*coordination*among*the*chain*actors*targeting*the* empowerment*of*the*family*farmer*producer.** For* this* reason,* it* is* important* to* contribute* to* knowledge* and* research* to* meet* farmer’s* community*needs*and*willingness*and*also*contribute*to*the*local*institutions*strategies*already*in* place.* Hence,* This* study* will* be* able* to* provide* tools* for* the* identification* of* main* gaps* in* the* chains.*Then*suggest*adequate*technologies*to*improve*the*performance*of*the*chains.*And*also,* recommend* necessary* efforts* at* the* decision;making* level* towards* the* development* of* appropriate*actions*within*the*scope*of*the*sustainable*development*in*the*rural*area*of*the*State* Rio*de*Janeiro.* 1.3. Research&gaps& There*is*an*agreement*on*the*need*for*better*understanding*the*role*of*value*chains*within*the* family*farming*context.*While*considerable*efforts*devoted*to*pondering*family*farming*issues*on* the* core* of* international* development* goals,* few* studies* attempt* to* the* contribution* of* family* farming* to* the* regional* development.* Although* Brazil* has* driven* policies* towards* the* domestic* market*for*the*benefit*of*the*smallholder,*there*are*certainly*hurdles*to*overcome.*It*is*required* research*and*development*of*new*strategies*for*improvement,*since*family;based*farmers*are*yet* at*a*disadvantage*position*on*the*participation*in*value*chains,*considering*the*access*to*policies* and*resources*available.** One* central* point* of* attention* is* that* Rio* de* Janeiro* has* the* potential* for* improvement* of* its* production,* supply* and* distribution* of* agricultural* products.* Nevertheless,* reflecting* on* both* studied*value*chains,*it*is*possible*to*infer*that*much*research*and*development*need*to*be*done* on*the*field*to*achieve*an*effective*rural*sustainable*development.*It*is*clear*that*the*production* isn’t* enough* to* meet* the* current* demand,* whether* in* terms* of* quantity* or* quality.* The* small* holder* until* this* moment* endures* countless* issues* to* produce* and* also* to* commercialize* his* products,* due* to* the* inefficient* distribution* system* available.* Moreover,* there* is* a* lack* of* coordination*among*main*actors*of*the*value*chains,*and*the*value*added*is*unfairly*distributed.* ! 4! A*better*commercialization*access*for*the*small*farmer*and*a*well*active*integration*of*principal* stakeholders*of*the*value*chain*are*issues*of*significance.*Additionally,*this*research*is*tended*to* study* value* chain* using* more* a* holistic* approach.* The* value* chain* is* a* very* complex* system* engaged* in* the* local* sustainable* development,* specifically* in* respect* to* the* family* farming.* It* is* fundamental* to* consider* the* farmer* as* the* central* player* in* the* sustainable* rural* development,* rather*than*use*VCA*as*a*tool*to*set*policies*merely*towards*pure*economic*growth.*Furthermore,* this* study* is* part* of* a* development* scope,* which* is* an* interest* of* local* communities,* local* governments*and*the*society*as*a*whole.* 1.4. Objectives& 1.4.1. General&objective& The*aim*of*this*research*project*was*to*employ*the*Value*Chain*Analysis*(VCA)*for*a*quantitative* and*qualitative*approach*in*two*production*value*chains*in*the*rural*area*of*Rio*de*Janeiro*State.* The* aim* was* to* identify* the* main* “bottlenecks”* that* hinder* the* development* of* the* chains* and* provide*insights*into*the*decision;making*process.*The*value*chains*analyzed*with*their*respective* location*were:* 1. Horticulture*chain:*micro;watersheds*of*“Barracão*dos*Mendes”*and*“Santa*Cruz”*in*the* city*Nova*Friburgo*in*the*Mountain*Region* 2. Coffee*chain:*micro;watersheds*of*“Varre;Sai”*and*“*Ribeirão*da*Onça”*in*the*city*Varre; Sai*in*the*Northwest*Region* 1.4.2. Specific&objectives& a) Study*both*value*chains*into*the*economic,*social*and*environmental*dimensions* b) Map*the*value*chain* c) Identify*the*problems*in*the*chain* d) Identify*potential*areas*of*improvement*of*the*value*chain* e) Foresee*scenarios*of*intervention*for*the*target*groups*and*policy*effects*on*the*chain* ! 5! 1.5. Research&questions& The*present*study*aims*to*answer*the*following*research*questions:* Q1:*How*the*socioeconomic*elements*are*affecting*the*value*chains?* Q2:*What*are*the*threats*and*opportunities*related*to*the*value*chains?* Q3:*Which*are*the*main*actors*of*the*chains*within*the*established*boundaries*of*study?* Q4:*What*activities*the*actors*are*engaging?* Q5:*How*is*the*flow*of*products*in*the*chain?* Q6:*What*is*the*interaction*among*the*identified*actors?* Q7:*Is*the*chain*creating*value*added?* Q8:* Is* there* any* abnormality* of* allocation* within* the* chains,* such* as* disparity* of* added* value,* assets,*information*or*any*market*distortions?* Q9:*Which*points*of*the*chain*are*weakened*or*strengthened?* Q10:*How*is*the*current*enabling*environment*regulating*the*functionality*of*the*chain?* Q11:*What*technologies*or*strategies*can*be*used*to*improve*the*performance*of*the*chain?* Q12:*What*interventions*could*be*set*at*the*decision;making*level*for*the*studied*target*groups?* ! 6! 2. CHAPTER:&STATE&OF&THE&ART& 2.1. The&role&of&family&farming&on&the&sustainable&rural&development& “Family)farming)has)an)important)socioIeconomic,)environmental)and)cultural)role”) FAO)I)2014)International)Year)of)Family)Farming) * For* the* Food* and* Agriculture* Organization* (FAO,* 2014a),* "family* farming* "* or* "family;based* agriculture"*includes*all*family;based*agricultural*activities*related*to*the*rural*development.*The* activities*involve*agriculture,*forestry,*pastoral,*fishery,*etc.,*originated*mainly*from*family*labor* including*men*and*women.*More*than*500*family;based*farmers*constitute*the*predominant*form* of* production* worldwide.* They* handle* 80%* of* the* world’s* food* value* and* the* largest* source* of* employment* globally* (FAO,* 2014c).* Yet,* the* contribution* of* the* family* farming* to* the* regional* development*has*been*poorly*documented*(Graeub*et*al.,*2015).* The*UN*has*acknowledged*2014*the*“International*Year*of*Family*Farming”*(IYFF)* (FAO,*2014a).* This*fact*suggests*more*attention*to*family*farming*issues*worldwide,*to*gather*commitment*and* policy* actions* towards* an* active* rural* sustainable* development,* and* ensuring* the* role* of* the* family* farming* at* the* core* of* decision;making* process* (FAO,* 2014a).* Development* of* specific* target*and*efficient*policies*on*family*farming*are*required*worldwide*(Graeub*et*al.,*2015).* As* stated* by* Graeub* et* al.* (2015),* Brazil* is* particularly* interesting,* as* it* plays* the* role* of* a* large* agricultural*exporter,*while*keeping*a*high*percentage*of*family*farming*oriented*to*the*domestic* market.*The*Brazilian*agrarian*policy*has*drawn*benefits*to*the*smallholder*farmer*in*the*form*of* programmes*to*support*family*farming*towards*value;added*agriculture*and*the*sustainable*rural* development* (MDA,* 2014).* However,* some* hindrances* still* prevail,* and* require* continuing* adjustment*and*improvement,*as*detailed*shortly.* 2.1.1. The&issue&of&family&farming&in&Brazil& The*term*family*farming*has*been*used*only*recently*in*the*framework*of*the*Brazilian*agriculture.* When* the* last;but;one* agrarian* Census* was* published* in* 1995;96* (IBGE,* 1998),* there* was* no* differentiation*of*smallholder*farmers*in*the*statistical*studies*and*analysis*of*the*broad*Brazilian* production.* The* concept* of* family* farming* was* then* portrayed* by* INCRA* &* FAO* (2000),* which* criticized*the*Census*of*1995;96*and*revealed*the*need*to*deepen*the*knowledge*of*the*Brazilian* agrarian*reality.** ! 7! Over*the*period,*1996*to*2006,*a*transformation*of*the*Brazilian*agrarian*structure*occurred,*and* the*concept*of*family;based*farming*enhanced*its*importance*(Brunier*&*Mariano,*2008).*In*2000,* the* Ministry* of* Agrarian* Development* was* created* by* the* Decree* N°* 3338/2000,* with* the* competencies* to* implement* the* agrarian* reform* and* promote* the* sustainable* development* in* rural* areas* where* family* farming* is* predominant.* In* 2003,* the* agenda* of* family* farming* had* become*institutionalized,*and*there*was*a*transformation*in*the*political*instruments*targeted*to* sustainable*rural*development*(MDA,*2014).** The*Brazilian*Law*N°*11,326*from*July*24,*2006*(Brasil*;*Casa*Civil,*2006)*formulates*the*guidelines* for*the*national*policy*intended*to*family;based*agriculture*and*rural*family*ventures.*According* to*the*current*law,*is*it*considered*“family;based*farmer”:* ⋅ The*one*who*practices*activities*in*the*rural*environment* ⋅ Does*not*hold*an*area*greater*than*four*fiscal*modules2** ⋅ Uses*family*labor*in*his*economic*activities*of*his*establishment*or*undertaking*in*majority** ⋅ Manages*his*establishment*or*undertaking*with*his*family* ⋅ Has*a*minimum*percentage*of*household*income*originated*from*his*economic*activities** The* most* updated* Census* (IBGE,* 2006a)* studied* this* issue* and* the* reality* in* Brazil.* The* Census* identified*4,367,902*establishments*of*family;based*agriculture,*which*correspond*to*84.4%*of*all* Brazilian*agriculture.*Figure&3*illustrates*the*extent*of*the*Brazilian*family*farming.*Despite*family; farming* represents* the* largest* piece,* the* agrarian* structure* of* the* country* remains* highly* concentrated.*To*have*an*idea,*the*non;family*establishments*(15.6%)*occupy*75.7%*of*the*total* producing*area*of*the*country.*Family*farming*owns*only*24.3%*of*the*area*and*just*one;third*of* the*total*Brazilian*agricultural*gross*revenue.*Nevertheless,*the*smallholder*farmers*are*the*ones,* in* fact,* responsible* for* the* role* of* food* security* in* the* country* and* the* food* supply* for* the* domestic*market*(IBGE,*2006a).* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 2!Each*state*and*municipality*have*a*specific*fiscal*module*for*family*property.*For*this*study,*the*fiscal*module*is*10*ha* in*Nova*Friburgo,*and*30*ha*in*Varre;Sai,*being*four*modules*the*equivalent*to*40*ha*and*130*ha*respectively.*Source:* (INEA,*2015)! ! 8! Figure&3:#Percentage&of&establishments&characterized&as&familyCbased&agriculture&& Source*of*the*map:*(IBGE,*2006a).*Description:*the*nuance*of*pink,*from*light*pink*(till*25%*of*the*establishments*with* family*farming)*gradually*to*dark*pink*(95.01*to*100%*of*the*establishments*with*family*farming).*Note:*the*majority*is* ranging*from*75.01*to*95%*of*the*establishments*predominantly*family*farming.* The*southeast*region*of*Brazil*presents*inequality*in*land*concentration,*and*it*is*associated*with* the*history*of*the*European*colonization,*especially*in*the*State*Rio*de*Janeiro*and*Espírito*Santo* (IBGE,* 2009).* In* * Rio* de* Janeiro,* there* is* inequality* in* the* concentration* of* lands,* and* it* is* very* characteristic* the* presence* family;based* farming,* representing* 75.49%* of* the* total* number* of* establishments*as*described*in*Table&1.* Table&1:&Family&Farming&prevalence&in&Rio&de&Janeiro&state&& Family;based*Agriculture*(Law*N°11,326)* Total*N°*of*establishments* (%)* Area*(ha)* (%)* Family;based*agriculture* 4,4145* 75.49* 470,221* 22.98* Non;*family*agriculture* (Employment;based)* 14,335* 24.51* 1,575,646* 77.02* Total*RJ* 58,480* 100* 2,045,868* 100* Source:*IBGE(2006a)* ! 9! 2.1.2. Brazilian&ProCFamily&Farming&Policies& The* fact* described* above* highlights* the* importance* of* endeavouring* efforts* on* family* farming* issues*to*achieve*the*sustainable*rural*development.*The*Brazilian*government*have*been*on*the* track* to* pursuit* progress* in* this* direction* and* has* drawn* initiatives* for* the* smallholder* in* the* condition* of* a* family* owned* property.* The* current* policies* and* programmes,* which* are* more* relevant*to*this*present*study,*are*detailed*in*this*section.* 2.1.2.1. National&Plan&for&the&Rural&Sustainable&Development&and&Solidarity& The* PNDRSS* “Plano* Nacional* de* Desenvolvimento* Rural* Sustentável* e* Solidário”* is* a* result* of* a* debate* between* the* Ministry* of* Agrarian* Development* (MDA)* and* the* National* Council* for* Sustainable* Rural* Development* (Condraf) 3 *in* 2013.* The* plan* brings* goals* and* strategic* instruments* for* an* inclusive* rural* sustainable* development* (MDA,* 2014).* The* summarized* objectives*of*the*program*are*(MDA,*2014):** I. To* promote* the* socio;economic* and* environmental* development* of* rural* areas;* to* promote*the*land*reform*and*land*democratization** II. To*adopt*a*territorial*approach*to*rural*development* III. To*manage*with*the*social*participation*in*public*policies;** IV. To*strengthen*the*agenda*of*rural*development*with*emphasis*on*family*farming*within* international,*regional*and*multilateral*spaces** V. To*promote*the*autonomy*of*women*and*the*rural*youth** VI. To*value*the*agricultural*biodiversity*and*socio;biodiversity* 2.1.2.2. National&Programme&for&the&Strengthening&of&Family&Farming&C&(Pronaf)& The*National)Programme)for)the)Strengthening)of)Family)Farming)(Pronaf)*–*“Programa*Nacional* de*Fortalecimento*da*Agricultura*Familiar“*–*is*an*intended*credit*to*stimulate*income*generation* and* improve* the* use* of* family* farming* labor,* through* the* financing* of* agricultural* and* non; agricultural* activities* developed* in* a* rural* establishment* or* community* areas* nearby* (Brasil,* 2014b).* Beneficiaries* of* the* Programme* are* agricultural* producing* area* units,* which* can* prove* their* consistency* in* the* framework* through* the* Statement* of* Aptitude* to* the* Pronaf* (DAP)* ;* “Declaração* de* Aptidão* ao* Pronaf”.* The* DAP* is* accredited* by* the* Ministry* of* Agrarian* Development* (MDA)* (Brasil,* 2014b).* In* 2014,* there* have* been* registered* around* 5* million* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 3!“Conselho*Nacional*de*Desenvolvimento*Rural*Sustentável“! ! 10! Statement*of*Aptitude*to*the*Pronaf*(DAP)*(MDA,*2014).*Commonly*acquired*by*farmers*already* allocated*in*other*programs,*or*farmers*in*disadvantageous*conditions*such*as*low*income,*land* tenure*rights,*and*indigenous*or*traditional*populations*(Brasil,*2014b).** The* Pronaf* has* lines* of* credit* intended* for* many* purposes,* for* instance,* agro;ecology,* the* environment,*and*forestry.*Additionally,*it*has*the*support*of*many*other*programs*and*actions* for*the*protection*of*the*production,*such*as*a*guarantee*of*prices,*crop*assurance*and*insurance* for*farmers,*which*enable*the*access*to*the*credit*from*Pronaf*(MDA,*2015).*Similarly,*inside*the* Pronaf,* there* are* incentives* for* value* chain* development,* such* as* the* Agribusiness* Program* (“Programa* Agroindústria”),* which* supports* the* inclusion* of* family* farmers* in* agro; industrialization* process* and* marketing* of* their* products* to* add* value.* The* More* Food* action* (“Mais*Alimentos”)*is*another*example,*allowing*the*smallholder*to*invest*in*the*modernization*of* his* production,* via* the* acquisition* of* machinery,* implements* and* new* equipment* to* all* agricultural*activities*(SAF,*2015).** 2.1.2.3. National&School&Feeding&Programme&(PNAE)& The* National* School* Feeding* Programme* –* “Programa* Nacional* de* Alimentação* Escolar”* –* contributes* to* growth,* development,* learning* and* school* performance* of* scholars,* through* the* provision* of* school* meals,* and* food* and* nutrition* educational* activities.* The* program* attends* students* in* all* primary* formation* (kindergarten,* elementary* school,* high* school,* and* adult* education)* enrolled* in* public* institutions* and* other* community* entities* (FNDE,* 2012).* As* states* the*Law*N°*11.947/2009,*at*least*30%*of*the*amount*transferred*to*the*states*and*municipalities,* participants*of*the*National*Fund*for*the*Development*of*Education*(FNDE),*meant*to*be*for*the* PNAE.*And*it*should*obligatory*be*precedent*from*the*purchase*of*produce*from*family*farming.* Also*as*a*requirement*for*this*program*farmers*need*the*DAP*statement*recognized*by*the*MDA* (FNDE,*2014).* 2.1.2.4. Food&Purchasing&Programme&(PAA)& The*Food*Purchasing*Programme*–*“Programa*de*Aquisição*de*Alimentos”*–*was*established*by* the*Article*19*in*Law*n°*10.696/2003.*The*aim*is*to*give*incentives*for*the*family*farming*and*also* promote* food* purchasing* through* the* distribution* targeting* food* insecurity* groups* and* the* creation* of* strategic* stocks* (MDS,* 2015).* The* overall* goals* of* the* program* are:* the* income* generation* for* the* family* farmers;* the* strengthening* of* cooperatives* and* associations;* the* crop* diversification,* the* direct* purchase* from* the* farmer;* and* the* incentive* to* sustainable* farming* ! 11! practices* (Conab,* 2010).* The* resources* are* provided* by* the* Ministry* of* Social* Development* and* Hunger*Eradication*(MDS)*–*“Ministério*do*Desenvolvimento*Social*de*do*Combate*à*Fome”*–*and* the* Ministry* of* Agrarian* Development* (MDA)* –* “Ministério* do* Desenvolvimento* Agrário”* –* The* execution* is* done* by* the* MDS* and* Conab* along* with* the* Brazilian* states* and* municipalities* (Conab,*2010;*MDS,*2015).*Figure&4*shows*the*actuation*of*the*PAA.* * Figure&4:&Extension&of&the&Food&Purchasing&Program&(PAA)&in&2014& Description:*PAA*actuation*showed*in*striped*marks*on*the*map.*Source:*(Conab,*2014)* 2.1.2.5. Other&Initiatives& Many*other*initiatives*have*been*undertaken.*In*short*for*example,*they*include*the*resumption* of* the* National* Council* for* Food* and* Nutritional* Security4*(CONSEA);* the* strengthening* of* the* National* Council* for* Sustainable* Rural* Development* (CONDRAF);* the* materialization* of* the* Zero* Hunger* Programme* (“Programa* Fome* Zero”);* the* approval* of* the* II* National* Plan* for* Agrarian* Reform*(II*PNRA);*the*Plan*of*Crop*for*family*farming*(“Plano*Safra*da*Agricultura*Familiar”);*and* the*institutionalization*of*the*national*policies*of*technical*assistance*and*rural*extension*(Pnater* and*Pronater*)*by*law*Nº*12.188/2010*(MDA,*2014).* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 4 *“Conselho*Nacional*de*Seguranca*Alimentar*e*Nutricional“* ! 12! 2.1.2.6. Programmes&in&the&State&of&Rio&de&Janeiro& For* the* State* of* Rio* de* Janeiro,* the* Secretariat* of* Agriculture* and* Livestock5*(SEAPEC,* 2015a)* provides* structuring* and* sectoral* projects* and* programmes.* These* actions* are* indented* to* provide* incentives* for* the* agricultural* and* livestock* production,* and* also* improve* the* infrastructure* within* rural* areas.* For* example,* the* “Cultivar* Orgânico”* supports* local* farmers* in* the*organic*production.*The*“Frutificar”*makes*available*credit*lines*in*favor*of*the*modernization* of* horticulture* and* orchards.* The* “Rio* Horti”* propels* for* Rio* de* Janeiro’s* population* an* increasingly*supply*of*vegetables*produced*in*the*state.*The*“Rio*café”*prepares*the*coffee*sector* to* meet* an* increasingly* demanding* market,* focused* on* the* quality* and* specialty* coffees;* and* other*programmes*meant*to*the*livestock*and*energy*production*(SEAPEC,*2015a).* 2.1.2.7. Programme&Rio&Rural&(PRR)& The*Sustainable*Rural*Development*Programme**(Rio*Rural),*performed*in*the*micro;basins*of*the* State* of* Rio* de* Janeiro,* endeavors* to* improve* livelihoods* in* the* rural* area* associating* the* conservation*of*natural*resources.*The*Secretariat*of*Agriculture*and*Livestock*of*the*State*of*Rio* de*Janeiro*(SEAPEC)*executes*the*programme*trough*the*Sustainable*Development*Office*(SDS).* With*the*fund*from*the*World*Bank,*it*attends*to*300*thousand*beneficiaries*over*the*470*worked* micro;basins.*The*programme*uses*the*micro;basin*methodology,*which*embraces*the*geographic* space* of* the* river* basins* for* sustainable* development* aims.* Through* the* engagement* of* local* communities*into*Management*Committees*of*Micro*Basins6*(COGEM),*they*lead*the*activities*of* development*in*the*micro;basins*(Programa*Rio*Rural,*2013).* The* programme* is* composed* of* two* projects.* One* is* the* “Rio* Rural* GEF”,* which* acts* in* the* integrated* management* of* agroecosystems* of* watersheds* in* the* Fluminense's* North* and* Northwest*Regions.*It*has*the*fund*from*the*Global*Environmental*Facility*(GEF).*And,*the*second* is* the* “Rio* Rural* BIRD”,* which* amplifies* the* actions* of* the* programme* on* the* sustainable* rural* development,* embracing* all* micro;basins* in* the* State* Rio* de* Janeiro,* with* fund* from* the* World* Bank*(Programa*Rio*Rural,*2013).* 2.1.3. Hurdles&of&the&Brazilian&sustainable&rural&development& Commodity* markets* have* drawn* more* resources* from* governments,* leaving* the* family* farming* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 5 6 ! “Secretaria de Estado de Agricultura e Pecuária” “Comitês Gestores de Microbacias” (COGEM)! 13! sector* with* few* investments.* This* fact* has* triggered* a* rural* exodus,* degradation* of* natural* resources* and* rural* poverty* and* hunger* in* many* regions* of* the* globe.* It* is* fundamental* to* consider*the*significant*role*of*family*farming*in*food*security,*community*well;being,*biodiversity* conservation,* the* economy,* sustainable* natural* resource* use,* and* also* climate* resilience* (FAO,* 2014b).** Achieving* sustainable* rural* development* at* the* national* level* has* to* consider* all* aspects* that* embrace*the*agrarian*reality.*For*instance:*territorial*conditions;*agro;ecological*conditions;*policy* framework;* market* accessibility;* land* and* natural* resources* availability;* ease* access* to* finance;* technology;* education* and* services;* and* the* socio;cultural,* economic* and* demographic* context* (FAO,*2014a).** Decision;making*in*Brazil*has*addressed*acknowledged*issues*since*the*start*of*rural*development* policies.*However,*there*is*still*the*presence*of*bottlenecks,*which*need*to*be*challenged*(MDA,* 2014).**Brazil*has*driven*policies*towards*the*domestic*market*niche*to*include*family*farming*in* an*agro;exporter*country.*Nonetheless,*it*has*left*lacunas*that*have*affected*Brazil’s*performance* (Graeub*et*al.,*2015).*Moreover,*there*is*still*a*portion*of*the*rural*population*which*has*not*been* yet* met,* and* adjustments* in* terms* of* decision;making,* mainly* regarding* the* accessibility* of* policies*and*programmes*are*required*(MDA,*2014).* The* “National* Plan* for* Sustainable* Rural* Development* and* Solidarity”* (MDA,* 2014)* points* out* some*of*bottlenecks*in*need*to*be*tackled,*such*as:** a) Put*more*efforts*on*the*agrarian*reform*issues,*as*it*constitutes*great*political*dispute*in* society** b) Support*the*transition*to*an*agroecological*model*of*production** c) Strengthen*the*territorial*democratization*process* d) Give* attention* to* the* productive* organization* in* terms* of* commercialization* in* order* to* increase*family*farmer's*income*and*at*the*same*time,*provide*access*to*the*markets7* For*Graeub*et*al.*(2015),*there*is*an*imbalance*in*access*to*policies*regarding*markets,*financial* services,*research*and*development.*Similarly,*the*access*to*better*education*mainly*in*rural*areas* is*not*sufficient.*The*same*authors*point*out*the*need*to*create*efficient*communication*among* stakeholders* within* the* family* farming* sphere,* in* a* manner* that* enhances* the* voices* of* family* farming* to* be* set* as* priority* of* the* decision;making* process* in* the* country.* Souza* et* al.* (2008)* equally* observed* that* smallholders* have* difficult* in* adapt* to* new* technological* patterns.* These* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 7!Underline*given*by*the*author! ! 14! farmers* are* struggled* by* limitations* of* the* access* to* capital,* labor* and* land,* thus* making* the* family* farmer* even* more* dependent* on* governmental* actions* and* credits* for* the* self; development.* In* the* view* of* that,* in* alignment* with* the* global* goals* of* development,* with* the* Brazilian* pro; family*farming*policies,*and*with*Rio*de*Janeiro’s*programmes*of*sustainable*rural*development,*it* is* important* to* understand* the* challenges* the* family* farming* faces,* in* order* to* identify* and* contribute*to*consistent*ways*for*an*effective*rural*development.* 2.2. Conceptual&framework&of&value&chain&analysis&(VCA)&& 2.2.1. Definition&of&value&chain&(VC)& The*term*value*chain,*as*defined*by*Bellù*(2013)*in*FAO*guidelines,*alludes*to*all*interdependent* economic*activities*and*all*linked*economic*agents,*since*primary*production,*till*consumption*of* the* final* product.* It* comprises* all* economic* activities* related* e.g.* processing,* delivery,* wholesaling,* retailing,* etc.* Product* or* a* group* of* products* is* what* define* the* value* chain;* it* is* a* physical* category* made* of* goods* or* services* traded,* e.g.* tomato* value* chain* (Springer;Heinze,* 2008b).* Using* Hellin* &* Meijer* (2006)* words,* value* chain* is* “a* range* of* activities,* which* are* required* to* bring*a*product*or*service*from*conception,*through*the*different*phases*of*production*(involving* a*combination*of*physical*transformation*and*the*input*of*various*producer*services),*delivery*to* final*customers,*and*final*disposal*after*use”.*Figure& 5*represents*a*simplified*version*of*a*value* chain*as*proposed*by*Hellin*&*Meijer*(2006).*According*to*Trienekens*(2011),*the*objective*of*VC* is*to*create*value*added*products*or*services*for*a*market.*The*infrastructure*is*used*to*transform* resources* within* a* context* of* opportunities* and* constraints* guided* by* the* institutional* environment.* As* defined* by* Springer;Heinze* (2008b),* value* added* is* a* measure* of* the* value* created*within*the*chain,*generated*by*the*operators/agents*of*the*chain.*In*simple*terms,*it*is*the* difference* between* the* prices* the* upstream* agent* gained* and* the* prices* he* paid* from* the* previous*stage*of*the*value*chain.* ! 15! Seed suppliers Farmers Traders Processors Exporters/ Importers Retailers Consumers * Figure&5:&Simplified&value&chain& Figure*adapted*from*Hellin*&*Meijer,*2006* The*term*“value*chain”*and*“supply*chain”*are*normally*interchangeable*(ILO*et*al.,*2012).*They* have*the*same*structure*based*on*an*agricultural*product,*starting*with*the*production*up*to*the* final* consumption.* And* it* involves* activities* such* as* processing,* packing,* storage,* transport* and* distribution*(FAO,*2005).* The* value* chain* is* very* complex,* according* to* Springer;Heinze* (2008a).* As* he* explains,* three* different* components* define* it.* (A)* First,* a* sequence* of* business* related* activities* or* functions,* including* supply* of* inputs,* primary* production,* transformation* and* final* sale* to* consumers.* (B)* Second,* a* set* of* enterprises* or* operators* that* handles* the* performance* of* activities,* i.e.* producers,*processors,*traders,*and*other*agents.*(C)*And*third,*a*business*model*characteristic*of* the*particular*product.* 2.2.2. The&concept&of&value&chain&analysis&(VCA)& The* value* chain* analysis* (VCA),* in* the* view* of* Bellù* (2013),* is* the* assessment* of* a* sector* of* an* economic* system.* The* agents* of* the* value* chain,* responsible* for* the* production* and* the* distribution* processes,* are* connected* by* technical,* territorial,* economic,* social* and* institutional* relationships*(Bellù,*2013).*VCA*is*a*qualitative*and*quantitative*conceptual*tool*(Hellin*&*Meijer,* 2006).* It* identifies* misalignments* in* food* chains* and* misallocations* of* resources,* and* pinpoints* the*opportunities*for*improvement*(Fearne*et*al.,*2012;*Taylor,*2005).* According*to*the*methodological*guidelines*for*VCA*written*by*Bellù*(2013),*used*for*the*purpose* of*this*study,*the*value*chain*analysis*is*composed*of*six*analytical*domains.*These*domains*are* necessary* to* identify* the* constraints,* opportunities,* strengths,* and* weaknesses* to* be* addressed* by*the*decision;making.*As*he*states,*they*comprise:* I. Socio;economic*context*of*the*VC:*outlines*the*socio;economic*context*in*which*the*value* chain* develops,* identifying* issues* such* as* the* geostrategic,* macro;economy* and* social* situation*of*the*country* II. ! Demand*for*VC*products:*studies*the*consumer*side,*looking*at*the*current*and*potential* 16! demand,*and*market*trends* III. Analysis* of* the* institutional* set;up* of* the* VC:* identifies,* quantifies* and* describes* the* operations*and*agents*carrying*on*these*activities*in*the*VC* IV. Analysis*of*input*and*output*markets:*analyzes*the*behavior*of*the*market,*the*degree*of* competitiveness,*which*contributes*to*the*VC*performance* V. Functional* analysis* of* the* VC:* identifies,* quantifies* and* describes* the* operations* and* agents*carrying*on*these*activities*in*the*VC* VI. Economic*analysis*of*the*VC:*accesses*the*value*chain*creation*in*quantitative*terms*and* the*distribution*of*value;added*and*margins*through*the*value*chain* 2.2.3. The&approach&of&value&chain&analysis&(VCA)&for&decisionCmaking& Governments,* donors* and* NGOs* have* used* the* value* chain* development* approach* for* rural* poverty*alleviation*programs,*over*the*past*decades*(Stoian*et*al.,*2012).*Value*chain*analysis*is*a* term*commonly*used*in*the*business*management*domain.*But*it*has*shown*good*results*with*the* assistance*of*small*farmers*to*obtain*better*access*to*the*markets*(European*Commission,*2011).** As* stated* by* Bellù* (2013),* the* approach* of* VCA* in* the* decision;making* needs* to* analyze* the* situation* of* the* value* chain* holistically.* The* different* economic,* environmental* and* social* dimensions* need* to* be* considered,* to* identify* opportunities* for* improvement* into* the* already* existing* and* impacting* policy* frame.* It* is* important* to* determine* the* policies* hindering* the* development* and* detect* the* institutions* and* organizations* engaged* in* the* decision;making* process*(Hellin*&*Meijer,*2006).** Stoian*et*al.*(2012)*assume*that*it*is*important*to*be*aware*and*focus*the*efforts*of*value*chain* analysis* on* the* unfavorable* groups.* To* make* sure* that* these* groups* have* the* minimum* asset* thresholds* to* take* participation* in* the* value* chain* initiatives.* As* he* affirms,* normally* the* interventions*in*value*chains*by*governments*do*not*take*into*consideration*the*difficulties*of*the* rural* poor,* who* face* trade;offs* or* higher* risks* on* investments* with* the* given* resources.* As* revealed* by* Donovan* &* Poole* (2014),* policy* makers* and* development* practitioners* are* lacking* adequate* guidance* to* develop* the* right* interventions* for* upgrading* the* condition* of* the* smallholder*towards*higher*value*markets,*consequently*helping*them*to*climb*out*of*poverty.* As*highlighted*by*Bellù*(2013),*value*chain*analysis*has*been*a*suitable*tool*to*investigate*the*role* of* VC* in* policies* targeting* poverty* alleviation,* food* security,* sustained* growth* and* reduction* of* inequality.*The*VCA*identifies*the*most*vulnerable*groups*within*the*chain,*and*further*looks*at* ! 17! the*options*for*resources*reallocation*to*provide*answers*for*policy*makers*concerning*scenarios* of*intervention.* Although,*VCA*demonstrated*considerable*impact*in*recent*development*studies*(Mitchell*et*al.,* 2009),*it*cannot*be*considered*a*“panacea*to*rural*development”*(Stoian*et*al.,*2012).*VCA*can*be* rather* regarded* as* a* simple* strategy* (European* Commission,* 2011)* for* the* complexity* of* agricultural* systems* (Stoian* et* al.,* 2012).* It* means* a* tool* to* diagnose* critical* issues* and* bottlenecks* for* target* particular* groups* and* further* suggest* interventions* able* of* changing* (Mitchell*et*al.,*2009).*The*success*of*actual*development*is*a*consequence*of*the*implementation* of*the*strategy,*a*result*of*practical*measures*applied*by*local*stakeholders*and*public*institutions* (European*Commission,*2011).** 2.2.4. Overview&of&recent&studies&on&the&field& The*Academia*has*rarely*portrayed*the*field*of*VCA*on*sustainable*rural*development*studies.*In* fact,*it*is*a*term*more*frequently*used*in*the*business*management*in*the*economic*domain,*and* just* recently* it* has* been* approached* in* terms* of* development* goals.* The* examples* here* presented* are* focused* on* the* underperformance* of* developing* countries’* value* chains* and* also* on*opportunities*for*improvement*and*adjustment*needs.* For* example,* Giuliani* (2007)* identified* that* the* agro;biodiversity* can* be* an* asset* to* the* development*of*markets*and*enhance*opportunities*for*strengthening*dry*land*economies.*Khoi* (2013)* observed* misalignments* in* the* dairy* value* chain* in* Vietnam,* identifying* that* the* value* added*creation*was*unequally*distributed,*affecting*more*farmers*than*big*processing*companies.* Shahiida*bt*Musa*et*al.*(2014)*studied*the*horticulture*industry*of*Malaysia,*with*the*focus*on*the* intermediaries’* roles* within* a* value* chain* in* transformation.* Stevens* (2001)* focused* on* trade* policy*for*value*chain*analysis,*being*important*to*consider*demand*protection*and*preferences,* especially*when*the*trade*relation*is*between*developed*and*developing*countries.*In*the*same* line,*Gereffi*et*al.*(2005)*also*point*out*the*difficulties*of*developing*countries*to*gain*access*to* markets,*mainly*due*to*risks*of*exclusion.* Trienekens*(2011)*studied*the*components*of*value*chain*analysis*in*developing*countries.*In*his* opinion,* the* components* are* the* network* structure* (market* channel* relationships),* the* value* added* (key* competitive* aim)* and* the* governance* structure* (organizational* arrangements).* His* study* contributed* to* better* understanding* the* value* chain* upgrading* process,* which* might* be* hindered* by* constraints* such* as* market* restrictions,* weak* infrastructures,* lack* of* resources* and* institutional*voids.* ! 18! In* the* institutional* sphere,* the* field* of* VCA* has* gained* more* visibility* and* has* been* frequently* used* as* a* decision;making* tool* for* development* means* in* rural* poverty* eradication* and* food* security.* The* portal* EASYPol* (FAO,* 2011a),* provides* resources* for* policy* making.* Resources* contain* issue* papers,* analytical* tools,* case* studies,* methodological* guidelines* and* other* conceptual*and*technical*materials,*specially*designed*for*policy*makers*who*wish*the*value*chain* analysis*approach.*Likewise,*the*GTZ*(“Deutsche*Gesellschaft*für*Technische*Zusammenarbeit”)*8,* in* co;operation* with* the* German* Federal* Ministry* for* Economic* Cooperation* and* Development,* developed* a* manual* called* “ValueLinks”* in* 2008* for* value* chain* analysis* focused* on* the* methodology*of*value*chain*promotion*(Springer;Heinze,*2008b).** The* EuropeAid* Programme* (European* Commission,* 2011)* highlights* the* importance* of* inclusive* value* chains,* in* order* to* support* the* small;scale* producer* access* to* the* markets,* thus,* contributing* to* the* rural* well;being* and* food* security.* Also,* Mitchell* et* al.* (2009)* performed* a* study* for* COPLA* “Comercio* y* Pobreza* en* Latinoamérica”* and* the* ODI* “Overseas* Development* Institute”* using* the* VCA* approach* to* benefit* the* rural* poor.* These* institutional* development* studies* have* shown* that* upgrading* the* small* holder* (as* a* target* group)* position* in* the* value* chains* is* a* matter* of* improving* the* sustainable* access* to* the* markets* of* value* chains,* thus* increasing* the* profits* of* the* target* group,* and* then* enabling* the* environment* for* the* rural* development.*The*value*chain*analysis*helps*to*explain*“why”*the*less*fortunate*may*face*barriers* to*trading*and*then*“how”*they*can*overcome*these*issues*(European*Commission,*2011;*Mitchell* et*al.,*2009).* Nevertheless,* it* is* fundamental* to* consider* that* improved* market* access* alone* is* not* certain* to* have* a* bold* impact* on* rural* poverty* reduction,* if* underlying* constraints* on* households’* investments* and* assets* are* not* addressed* adequately* (Donovan* &* Poole,* 2014).* Stoian* et* al.* (2012)*point*out*that*little*is*known*about*the*impacts*of*the*value*chain*development*approach* on* rural* poverty* issues.* He* affirms* that* a* lot* of* rural* people* continue* to* be* in* vulnerable* conditions.*He*also*suggests*the*need*to*improve*the*understanding*of*pro;poor*interventions*in* value*chains,*thus*yet,*the*current*knowledge*is*insufficient*regarding*many*crucial*issues.** The*International*Fund*for*Agricultural*Development*(IFAD)*has*developed*value*chain*finance*for* agriculture,* since* the* small* holders* prevail* over* the* large* portion* of* the* poor* rural* people* in* developing*countries.*These*people*are*important*target*group,*considering*the*increase*in*socio; economic*welfare*and*the*improvement*of*food*security*status*(IFAD,*2012).** !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 8 ! Today the GTZ is part of the GIZ (Deutsche Gesellschaft für Internationale Zusammenarbeit)! 19! Moreover,*Fearne*et*al.*(2012)*suggest*a*more*holistic*approach*in*VCA,*incorporating*the*three* pillars* of* sustainability* * (social,* environmental* and* economic),* and* not* being* used* merely* as* an* economic* tool.* This* fact* is* aligned* with* Soosay* et* al.* (2012),* which* used* the* sustainable* VCA* to* identify* resources* allocation* and* consumer* preferences.* They* highlight* the* importance* to* approach*holistically*in*a*product*or*a*chain,*even*in*a*business*perspective.*Stoian*et*al.*(2012)* also*affirm*that*pro;poor*value*chain*development*tends*to*lack*a*more*holistic*perspective.* Therefore,*the*sustainable*value*chain*concept*is*now*under*the*FAO*guiding*principles*because*it* constitutes*a*paradigm*of*development.*The*(FAO,*2014b)*defines*the*sustainable*value*chain*as*a* sum* of* added* value* activities* of* farms* and* firms.* These* activities* include* the* production* of* agricultural* raw* material,* the* transformation* into* food* products,* and* the* trade* to* final* consumers.* However,* as* FAO* states,* these* activities* besides* being* profitable,* need* to* bring* benefits*to*the*society*and*do*not*deplete*the*natural*resources.** These* aspects* only* remark* the* importance* in* pursuing* studies* and* improving* approaches* and* methodologies*comprising*the*many*interfaces*of*the*sustainable*development*of*a*very*complex* system,*in*which*agriculture*constitutes.** * ! * 20! 3. CHAPTER:&RESEARCH&AREA& This*study*was*held*in*the*rural*area*of*Rio*de*Janeiro*State,*Brazil.*Two*research*areas*were*used* to*analyze*two*distinct*value*chains*denominated*as*“Value*Chain*A”*–*Coffee*in*the*Northwest* Region;*and*“Value*Chain*B”*–*Horticulture*in*the*Mountain*Region.*They*are*detailed*as*follow.* 3.1. Value&Chain&A:&Coffee&& The* value* chain* A* (coffee)* is* located* in* the* municipality* of* Varre;Sai,* part* of* the* river* basin* “Itabapoana”.* The* field* research* was* held* in* the* micro;basins* “Ribeirão* da* Onça”* (MB1)* and* “Varre;Sai”*(MB2),*represented*by*numbers*“1”*and*“2”,*respectively*in*Figure&6.* Value&Chain&A:& Coffee& * Figure&6:&Field&study&areas&of&Value&Chain&A&(Coffee)& Municipalities*in*green,*micro;basins*in*yellow,*field*study*areas*represented*by*numbers*on*the*left.*Source:*GIS*Map* from*INTECRAL*Project*(unpublished),*2015* 3.1.1. Summary&of&the&municipality&VarreCSai& Varre;Sai*is*a*municipality*of*Rio*de*Janeiro*State,*a*micro;region*of*Itaperuna*and*meso;region*of* the* Fluminense’s* Northwest* Region.* The* municipality* has* a* territory* of* 190,061* Km2* (IBGE,* 2015b).* The* city* has* 9,475* inhabitants,* according* to* the* last* Census* (IBGE,* 2010a).* The* Human* Development* Index* (HDI)* is* 0.659* (PNUD* et* al.,* 2013).* Varre;Sai* has* a* “high;altitude* tropical* ! 21! climate”*(Cwb),*consistent*with*the*Köppen;Geiger*classification*(Kottek*et*al.,*2006).*This*climate* has*cooler*temperatures*due*to*the*altitude*of*the*mountainous*regions*of*the*State*RJ*(CEPERJ,* 2015).** The*municipal*GDP*is*R$*134.378*thousand.*Considering*that*coffee*is*one*of*the*main*economic* activities* (SEAPEC;SDS,* 2015b).* Varre;Sai* is* the* larger* producer* of* coffee* Arabica,* representing* 34.49%*of*the*production*of*Rio*de*Janeiro,*and*20.8%*of*the*GDP*of*the*Municipality*(EMATER; Rio,*2013b;*IBGE,*2013).*The*tourism*is*also*a*significant*economic*activity,*organizing*few*cultural* and*regional*festival*and*events*of*the*year*and*holding*some*tourist*spots*(Prefeitura*Municipal* Varre;Sai,*2015).* 3.1.2. Characteristics&of&MB1&and&MB2& The* micro;basin* “Ribeirão* da* Onça”* (MB1)* creates* the* municipal* limit* of* Varre;Sai* and* Porciúncula.*MB1*has*an*area*of*3,198*ha*and*a*length*of*12km.**The*micro;basin*of*the*stream* “Varre;Sai”* (MB2)* is* in* the* southwestern* part* of* the* municipality* of* Varre;Sai,* and* it* is* the* primary*source*of*water*for*the*urban*area*of*the*city.*MB2*has*an*area*of*6,281*ha*and*length*of* 8*km.*(Rio*Rural*;*GEF,*2015b,*2015a;*SEAPEC;SDS,*2015a).** Both* micro;basins* have* similar* climate* characteristics.* The* average* temperature* in* the* MB2* “Varre;Sai”* is* 20°C.* The* average* annual* precipitation* is* of* 1,400* mm* well* distributed* over* the* year,* with* sporadic* hail,* without* periods* of* pronounced* drought,* and* the* presence* of* warm* summer* (Rio* Rural* ;* GEF,* 2015a).* In* the* MB1* “Ribeirão* Onça”,* the* summer* also* is* warm* and* humid,* and* the* winter* is* usually* cold.* The* average* precipitation* is* 1,200* mm* per* year,* usually* concentrated* during* the* spring;summer* period* (SEAPEC;SDS,* 2015a).* The* vegetation* of* both* watersheds*consists*of*rainforest*in*mountainous*terrain*with*remaining*areas*of*Atlantic*forest* (Rio*Rural*;*GEF,*2015b,*2015a).* In*general,*the*proximity*of*the*MB2*to*the*urban*center*of*Varre;Sai*facilitates*the*access*to*basic* services.*There*are*four*health*centers*in*the*city,*as*reported*by*IBGE*(2015a),*and*good*quality* primary*schools*mainly*for*the*MB2*(SEAPEC;SDS,*2015b).*On*the*other*hand,*the*MB1,*which*is* more* distant,* has* insufficient* basic* services,* such* as* transportation,* better* education,* health,* waste*collection,*sanitation*and*so*forth*(SEAPEC;SDS,*2015a).** ! 22! 3.1.3. Organization&of&rural&communities&in&MB1&and&MB2& The*MB1*“Ribeirão*da*Onça”*has*four*farmer’s*associations.*The*fieldwork*embraced*two*of*these* farmer’s* association* communities,* called* “Boa* Ventura”* and* “Degredo”.* The* main* problem* of* these* associations* is,* as* reported* by* SEAPEC;SDS* (2015a),* that* they* are* not* well* organized* and* have* irregular* documentation,* which* complicate* their* participation* in* the* governmental* programs.* In* the* MB2* “Varre;Sai”,* many* of* the* known* renowned* family;based* farmers* were* interviewed.*There*was*the*opportunity*to*contact*the*cooperative*COOPERCANOL,*which*counts* with*120*associated*farmers*in*Varre;Sai*and*other*regions*of*Rio*de*Janeiro,*as*Ferreira*stated*in* the* interview* (Appendix& 8).* However,* the* cooperative* was* about* to* be* launched* only* a* few* months*after*the*fieldwork,*and*the*construction*was*not*finished*yet*during*the*research*period.* 3.2. Value&Chain&B:&Horticulture& The*value*chain*B*(Horticulture)*is*in*the*Mountain*Region*(“Serrana”*Region),*in*the*municipality* of*Nova*Friburgo,*part*of*the*river*basin*“Bacia*Dois*Rios”.*The*research*took*place*in*the*micro; basins*“Santa*Cruz”*(MB3)*and*“Barracão*dos*Mendes”*(MB4),*numbers*“3”*and*“4”,*respectively* in*Figure&7.* Value&Chain&B:& Hor2culture& * Figure&7:&Field&study&areas&of&Value&Chain&B&(Horticulture)& Municipalities*in*green,*micro;basins*in*yellow,*field*study*areas*represented*by*numbers*on*the*left.*Source:*GIS*Map* from*INTECRAL*Project*(unpublished),*2015* ! 23! 3.2.1. Summary&of&the&municipality&Nova&Friburgo& Nova*Friburgo*locates*in*the*Mountain*Region*of*Rio*de*Janeiro*State,*in*the*regional*Fluminense’s* center.*The*Latitude*is*22º*16*'55*"*and*longitude*is*42*31*'52"*(PMNF,*2015),*just*136*km*away* from*the*capital*of*Rio*de*Janeiro* (Iniciativa*Agenda*21*Comperj,*2015b).*The*area*of*the*city*is* about*933,414*km2.*The*total*number*of*inhabitants*was*182,082*in*2010*(last*Census),*and*the* Human*Development*Index*is*0.745*(IBGE,*2010a,*2015a;*PNUD*et*al.,*2013).* The* region* presents* a* mountain* undulated* relief* initially* covered* by* the* “Mata* Atlântica”* rainforest*(Schwenck,*2008).*The*landscape*is*characterized*by*hills,*coastal*plains*in*a*mountain* range*and*precipitation*levels*on*average*of*1000;1750*mm,*achieving*in*sometimes*the*level*of* 4000*mm*annually*(Brasil*et*al.,*1996).*The*forest*is*more*concentrated*in*higher*altitude*areas,* but*in*rural*areas*it*is*more*deforested,*due*to*the*agricultural*and*livestock*production*(Iniciativa* Agenda* 21* Comperj,* 2015b).* The* climate* is* the* “high;altitude* tropical* climate”* (Cwb),* using* the* classification* of* the* Köppen;Geiger* (Kottek* et* al.,* 2006).* Characterized* by* mild* temperatures* in* summer*and*cold*in*winter,*with*four*distinct*seasons*(PMNF,*2015).** It*has*been*registered*the*occurrence*of*erosive*processes,*notably*characterized*by*intense*sheet* and* gully* erosion,* eventually* siltation* and* material* detachment.* The* severe* deforestation* intensifies* the* surface* runoff,* which* has* recently* developed* intense* floods,* and* landslides* that* had*devastated*several*cities*nearby*the*mountain*region*(Schwenck,*2008).*In*2011,*the*city*was* one*of*the*most*affected*victims*of*the*greatest*natural*disaster*occurred*in*Brazil.*The*disaster* was* provoked* by* heavy* rains,* which* caused* a* toll* death* in* the* city* of* 423,* and* left* the* town* completely*isolated*and*devastated*(Iniciativa*Agenda*21*Comperj,*2015b).* Nova* Friburgo* has* a* well;developed* network* of* family* farms,* despite* the* precariousness* of* education* and* health* services* in* the* rural* areas* (Iniciativa* Agenda* 21* Comperj,* 2011).* The* municipal*GDP*totalizes*R$*3,164,288.00*thousand,*in*which*agriculture*contributes*to*2.2%.*The* main* economic* activities* are* the* tourism,* intimate* apparel* industry,* cut* flowers,* horticulture,* goat* production* and* other* industries,* e.g.* textiles,* clothing,* metal,* etc.* (PMNF,* 2015).* Nova* Friburgo* is* the* largest* center* of* intimate* fashion* apparel* manufacturers* in* Brazil,* and* also* an* important*regional*center*of*the*metalworking*industry*(Iniciativa*Agenda*21*Comperj,*2015b).* 3.2.2. Characteristics&of&MB3&and&MB4& The* MB3* “Santa* Cruz”* comprises* the* river* “Rio* Grande”* and* the* branch* stream* Salinas.* The* micro;basin* has* an* area* of* 4.041.8* ha,* in* which* 411.4* ha* is* the* area* of* the* State* Park* “Parque* ! 24! Estadual* dos* Três* Picos”,* and* a* total* length* of* 43km.* The* area* of* MB4* “Barracão* dos* Mendes”* comprises*the*hydrology*of*the*river*“Grande”,*stream*“Grande”,*stream*“Barracão*dos*Mendes”* and* stream* “Florândia* da* Serra”.* The* MB4* has* an* area* of* 2,849.53* ha* and* a* length* of* 24* km* (SEAPEC;SDS,* 2015b).* Regarding* the* climate,* MB3* has* average* temperatures* around* 16°C,* in* which*during*the*summer*is*around*22°C*and*in*the*winter*is*around*11°C.*There*is*the*occurrence* of* frost* in* the* winter* and* sporadic* hail* rain* in* the* summer.* MB4* has* the* same* climate* characteristics*with*a*slight*difference*of*temperatures.*The*average*annual*temperature*is*18°C,* in*which*24°C*during*the*summer*and*13°C*during*the*winter*(SEAPEC;SDS,*2015b).* The* majority* of* properties* are* smaller* than* 20* ha* (93%)* in* MB3.* The* main* production* is* of* vegetables* for* the* capital,* especially* cauliflower,* tomato,* parsley,* broccoli,* beetroot,* etc.* (Rio* Rural*;*BIRD,*2014b).*The*MB4*also*dedicates*to*the*horticulture,*cauliflower,*tomato*and*lettuce* and*also*fruits,*in*properties*ranging*less*than*10*ha*(SEAPEC;SDS,*2015b).*The*products*selected* for* the* analysis* of* Vale* Chain* B* are* those* with* economic* relevance* for* the* MBs.* The* research* studied*two*groups*of*vegetables*in*the*field*area:* Group&1&–&Greeneries&(leafy):& Cauliflower,*lettuce,*parsley,*and*Chinese*cabbage* Group&2&–&Vegetables&(boxed):* Tomato,*green*beans,*and*beetroot* Regarding* the* access* to* the* essential* services* and* infrastructure,* the* MB3* holds* relatively* good* primary*schools,*and*despite*the*majority*of*roads*are*unpaved,*there*is*access*to*a*main*paved* road.* Sanitation* isn’t* enough,* likewise* the* wastewater* treatment,* and* the* community* lacks* a* health*center*(Rio*Rural*;*BIRD,*2014b).*In*the*MB4,*roads*have*poor*maintenance,*schools*are*in* bad* conditions,* and* structure* and* sanitation* are* irregular,* and* there* is* no* health* center* in* the* community*as*well*(Rio*Rural*;*BIRD,*2014a).** 3.2.3. Organization&of&rural&communities&in&MB3&and&MB4& The* fieldwork* embraced* communities* of* farmers* of* both* MBs.* In* MB3,* two* communities* were* studied,* the* farmer* association* * “Salinas”* and* * “Santa* Cruz”.* In* MB4,* the* communities* “Rio* Grande”,* “Florândia* da* Serra”,* “Barracão* dos* Mendes”* and* “Serra* Nova* e* Serra* Velha”* were* studied.*The*group*of*organics*Abio*was*useful*for*comparison.*COGEM*meetings*with*both*MBs* were* very* helpful* to* establish* contact* with* the* farmers.* The* milestone* of* these* communities* started*right*after*the*disaster*of*2011,*which*helped*the*insertion*in*the*governmental*programs,* although*many*structural*problems*remain*on*the*MBs.* ! * 25! 4. 4.1. CHAPTER:&METHODOLOGY& Research&design& The*research*was*performed*in*three*phases*in*different*time*frames,*as*seen*in*Figure&8:* * Figure&8:&Research&Design& Diagram*elaborated*by*the*author* The* first* phase* happened* at* the* end* of* 2013,* starting* with* the* INTCERAL* kick;off* workshop* in* September.*Meetings*with*the*local*stakeholders*SEAPEC,*EMATER,*and*PESAGRO,*and*the*field* campaign*with*the*COGEMs*helped*the*identification*of*the*main*problems,*and*thereafter,*the* selection* of* the* study* areas.* Further,* it* was* developed* the* conceptual* design* for* the* project* proposal,*and*the*preparation*for*the*fieldwork.* The* second* phase* was* carried* out* from* January* to* March* 2014.* A* scholarship* from* CNRD* provided*the*travel*funding*for*the*fieldwork*in*Brazil.*The*sampling*and*data*collection*in*the*two* ! 26! selected* research* areas* was* executed.* The* research* was* accomplished* through* participation* in* the*life*of*the*community*of*study,*where*a*natural*network*of*connections*was*created*to*gather* information*for*the*value*chain*study.*The*organization*of*the*data*acquired*from*questionnaires* and*interviews*for*further*analysis*was*completed*during*the*year*2014*after*the*fieldwork.* The*final*third*phase*related*to*the*research*analysis*and*elaboration*of*the*written*report*started* in*May*2015*up*to*September*2015.*In*this*stage,*the*literature*review*was*deepened*to*analyze* the*chains*of*study.*The*study*was*fully*completed,*including*all*six*analytical*steps*of*value*chain* analysis:* the* socioeconomic* analysis,* demand* profile,* institutional* analysis,* functional* analysis,* value*chain*mapping,*and*economic*analysis.*And*finally,*the*study*ended*with*the*presentation* of*results,*discussion,*and*conclusion.** 4.2. Methods&C&Value&Chain&Analysis&(VCA)& The* conceptual* methodology* for* the* VCA* was* accomplished* using* the* Food* and* Agriculture* Organization* (FAO)* guidelines.* The* research* based* on* the* documents* “Value* Chain* Analysis* for* Policy* Making”* (Bellù,* 2013),* and* “Guidelines* for* value* chain* analysis”* (Hellin* &* Meijer,* 2006).* Additional* case* studies* from* Bockel* &* Tallec* (2005)* and* Gilbert* (2006)* helped* to* design* questionnaires*and*interviews*of*the*research.*All*publications*were*retrieved*from*FAO*tools*for* decision;making,*published*by*the*EasyPol*(FAO,*2011a).** A*complementary**“Value*Chain*Analysis*Software*FAO*VCA*Tool*3.2”*developed*by*Bellù*&*Cappi* (2011)* was* originally* proposed* for* data* analysis.* However,* it* was* impossible* to* install* the* software,* tried* on* different* computers* by* various* persons.* The* software* developers* were* contacted,* and* no* answer* has* ever* been* given* back.* Therefore,* all* analytical* tools,* here* described,*had*to*be*done*manually,*and*carefully*analyzed,*which*required*more*time*than*the* expected.* With* the* purpose* of* analyzing* the* value* chain,* the* six* analytical* steps* of* the* domains* of* VCA* (Figure&9)*were*conducted*in*this*research,*as*follow.* VC Socioeconnomic analysis Demand profile analysis Institutional set-up analysis input/ output analysis Functional analysis Economic analysis VCA * Figure&9:&Six&analytical&steps&of&the&value&chain&analysis&framework&& Figure*elaborated*by*the*author*using*the*concepts*described*by*Bellù*(2013)* ! 27! 4.2.1. Step&1:&Socioeconomic&situation&of&the&value&chain& This*analytical*domain*identifies*the*main*features*of*the*context*in*which*the*chain*inserts,*for* instance,* the* geostrategic,* macroeconomic* and* social* situation* of* the* region* or* country.* And* it* also* finds* how* all* these* elements* affect* the* chain* itself* (Bellù,* 2013).* Statistical* database* in* agriculture*was*used*as*a*research*source*for*macroeconomic*analysis.*For*the*coffee*value*chain,* it* was* investigated* the* performance* of* the* Brazilian* coffee* to* situate* Rio* de* Janeiro* within* the* large*Brazilian*coffee*economy.*The*study*comprised*data*from*MAPA,*IBGE,*ICO,*Conab,*FAERJ,* Emater;Rio* and* many* studies* from* Andrade* and* other* colleagues* exclusively* for* the* Northwest* Region.*For*the*horticulture*chain,*it*was*evaluated*the*situation*of*the*country*and*the*Mountain* Region* importance* in* Rio* de* Janeiro,* considering* the* horticulture* production* significance* in* the* domestic* market.* For* this* matter,* data* from* IBGE,* FAOSTAT,* Embrapa;Hortaliças,* ABCSEM,* Secretariat*of*Agriculture*and*Rural*Development*of*Nova*Friburgo*municipality,*and*Emater;Rio* were*widely*explored.* A* household* socioeconomic* survey* gave* a* wide* context* of* the* study* areas.* The* farmers* were* requested* to* inform* their* age,* gender,* marital* status,* birth* origin,* profession,* household* size,* education* level,* average* income* (in* minimum* wages),* and* the* condition* of* the* property.* This* information*was*valuable*to*characterize*better*the*most*vulnerable*groups.** 4.2.2. Step&2:&Demand&for&value&chain&outputs& This*analysis*meant*to*investigate*the*consumer*side,*such*as,*the*current*or*potential*demand*for* outputs,* their* destination,* price* trends* and* forecasts* associated,* consumer* profile,* existing* and* potential* competitors,* and* other* issues* (Bellù,* 2013).* VCA* analyzed* the* studied* value* chains* regarding* the* demand* profile,* including* the* quantity* consumed,* trends* and* behaviors* of* the* consumption* reported* in* the* literature* consulted.* The* output* regarding* quantity* produced* and* quantity*traded*and*commercialization*channel*among*the*actors*were*also*interviewed.** 4.2.3. Step&3:&Analysis&of&the&institutional&setup& It* was* performed* an* appraisal* of* the* institutional* set;up,* as* the* methodology* by* Bellú* (2013)* proposes,* to* see* the* organization* and* interaction* among* different* agents,* such* as* upstream; downstream*linkages,*synergies*or*conflicts.*Also,*it*was*assessed*all*formal*or*informal*rules*of* governance*imposed*on*the*value*chain,*whether*naturally*by*itself*or*by*an*authority.** ! 28! There* was* contact* with* the* centrally* engaged* institutions,* such* as* community;based* organizations* (COGEMs,* farmer’s* cooperatives,* and* associations);* governments* (Agriculture* Secretariats),*research*and*extension*centers*(EMATER*and*PESAGRO).*Likewise,*the*hub*of*rules* and*public*policies*were*collected*during*the*field*research,*talking*with*the*agents*of*the*chain,* and*also*through*the*review*of*literature,*mainly*on*the*national*policies*for*family*farming*and* specific*sectors.* 4.2.4. Step&4:&Analysis&of&input&and&output&markets& This* analysis* concentrated* exclusively* on* the* assessed* value* chains* within* Rio* de* Janeiro* boundaries*exclusively.*There*was*no*further*expansion*embracing*outside*markets,*such*as*the* national* and* international* market,* due* to* limitations* of* the* study* and* due* to* the* overall* objectives*of*the*INTECRAL*project.*This*analytical*step*grabbed*the*overall*behavior*of*the*value* chain,* identifying* the* input* and* output* markets,* the* role* of* each* agent* of* the* value* chain.* The* study* looked* beyond* the* institutions* governing* the* chain,* to* see* choices,* competitiveness,* and* the* existence* of* monopoly,* monopsony,* oligopoly,* or* market* segmentation.* Moreover,* it* evaluated*how*the*value*chain*structure*works,*how*is*the*value*added*creation*and*how*are*its* allocation*and*implications.*In*this*sense,*the*market*was*assessed*on*specific*features*according* to*Bellú*(2013):* • Number*of*agents* • Level*of*information*available*to*sellers*and*buyers* • Entry/exit*barriers*for*sellers*and*buyers* • Control*binding*the*supply* • Control*over*prices* • Nature*of*product* • Market* structure* efficiency* level* and* pricing* mechanisms,* e.g.* perfect* competition,* monopoly* (only* one* seller),* oligopoly* (few* sellers),* monopsony* (only* one* buyer),* oligopsony*(few*buyers),*or*other,*depending*on*the*competition*** This* analysis* was* a* result* of* interpretation* of* the* value* chains* studied.* Conducted* through* the* field* observation,* field* notes,* notably* keywords* and* sentences* in* the* field,* and* hidden* information* perceived* from* the* interviewees* during* the* questionnaires* and* interviews.* The* observed* behavior* suggested* that* there* wasn't* an* equitable* distribution* of* information* among* the*agents.* ! 29! 4.2.5. Step&5:&Functional&analysis& This* domain,* as* states* Bellú* (2013),* provides* a* detailed* profile* of* the* industry* structure* and* production*through*identification,*description,*and*quantification*in*physical*terms*in*all*sequence* of*operations*to*reach*the*final*consumption.*More*specifically:* A. Technical*operations*performed*on*entire*chain* B. Inputs*used*and*intermediate*outputs*generated* C. Economic*agents*involved* D. Physical*flows*of*the*commodity* E. Bottlenecks** The* functionality* of* the* VC* used* the* following* mechanisms,* according* to* the* guidelines* (Bellù,* 2013;*Hellin*&*Meijer,*2006):* A)* Setting* the* boundaries* of* the* value* chain:* all* processing* stages* up* to* the* final* product,* including* market* intermediates,* various* by;products* or* joint* products.* The* limits* of* the* value* chain*comprised*the*State*of*Rio*de*Janeiro,*concentrating*more*on*the*areas*of*investigation* –* Nova*Friburgo*and*Varre;Sai.* B)* Identifying* activities:* Identification* of* activities* undertaken* at* each* stage* of* the* chain.* Like* primary* commodity* production* and* different* technologies;* processing* level* and* processing* methods;* transport,* handling,* storage;* wholesale,* retail* distribution;* and* intermediation.* The* activities* were* identified* first* through* literature* review,* and* expert’s* consultation,* then* more* practical*on*the*fieldwork.* C)* Identifying* agents:* It* was* determined* the* agents* that* are* performing* the* chain* to* design* a* basic*chain*flow*chart.*A*functional*analysis*table*of*the*value*chain*was*created,*describing*each* agent,* activity* undertaken* and* outputs.* Each* interviewed* agent* was* scaled* up* for* a* representation*integrating*the*VC.* D)*Quantifying*physical*flows:*quantification*of*flows*for*a*value*chain*through*yields*per*unit*of* activity* (e.g.* ha)* times* the* number* of* hectares* cultivated* for* a* representative* agent,* using* the* information* given* in* the* questionnaires.* The* analysis* designed* Input;output* matrices* of* flows* among*agents,*and*a*graphical*representation*of*physical*flows*charts.*Also,*it*was*built*a*Supply* Utilization*Account*(SUA),*considering*quantities*used*and*quantities*supplied.* ! 30! 4.2.6. Step&6:&Economic&analysis&of&the&value&chain& The*economic*analysis,*as*described*by*Bellú*(2013),*assesses*in*quantitative*terms*the*creation*of* value*added*and*its*distribution*within*the*process.*Here*value*added*is*the*wealth*created*by*the* process,* a* result* of* net* resources* consumed.* More* specifically,* the* economic* analysis* helps* to* determine:* • The*value*added*creation*throughout*the*chain** • The*margins*and*value*added*for*each*agent*of*the*chain** • Value*added*allocation*among*the*factors*(capital,*labor,*and*assets)* The* value* added* is* useful* to* investigate* the* extent* to* which* the* value* chain* contributes* to* the* economy.*The*shares*of*these*values*among*the*agents*also*helps*to*assess*the*social*importance* of* the* value* chain,* therefore,* induce* some* policies* measurements* to* affect* the* chain.* In* this* study,*as*the*boundary*set*restricted*to*Rio*de*Janeiro,*this*analytical*step*was*applied*exclusively* to*the*study*area,*not*extending*to*the*whole*national*economy.* All* required* data* for* the* economic* analysis* was* acquired* during* the* fieldwork* using* questionnaires* and* interviews.* The* results* of* the* economic* analysis* reflect* the* values* over* that* period* (2012,* 2013* and* 2014),* depending* on* the* value* chain,* in* a* particular* boundary* (Rio* de* Janeiro*State).*For*better*detail*over*the*data*required,*please*check*the*“data*requirements*for* value*chain*analysis”*in*Annex&1.*The*purpose*was*to*appraise*revenues,*costs*and*margins*(value* added*and*net*benefit)*of*each*activity*and*agent,*to*evaluate*the*production*process*(Figure&10).* * Figure&10:&The&production&process&used&in&Economic&Analysis& Source*(Bellù,*2013)* The* method* used* was* similar* to* “Cost;Benefit* Analysis”* (CBAs),* as* termed* by* Bellù* (2013).* The* tools*used*for*the*economic*analysis*were*the*“Production*Account”*and*the*“Income*Account”,* following*accounting*standards,*to*ensure*consistency*and*comparability*of*results.* ! 31! A)* Production* Account:* It* determines* the* Value* Added* (VA).* The* production* account* is* the* revenues* minus* the* value* of* inputs* required* for* the* outputs.* The* value* added* was* calculated* through*the*Gross*Value*Added*(GVA)*and*the*Net*Value*Added*(NVA)*according*to*the*following* equations*on*the*box*(Figure& 11).*The*results*were*expressed*in*a*table*format,*highlighting*the* Value*Added*as*a*balance*of*the*production*accounts.* Total"output"value)=)Sales)Revenue)+)Own)final)consumption)+)Change)in)inventories) (1)) Change"in"inventories)=)Stock)at)the)end)of)period)–)Stock)at)the)beginning)of)period) (2)) Gross"Value"Added"(GVA))=)Total)Output)Value)–)Intermediate)Inputs)(II)) (3)) )Net"Value"Added"(NVA))=)Gross)Value)Added)(GVA))–)Consumption)of)fixed)capital) (4)) )Consumption"of"fixed"capital"(Cf))=)Value)of)asset)(V))/)time)of)constant)efficiency)(n)) (5)) Wherein:* Total*output*value:*Goods*and*services*sold*on*the*market,*used*for*own*consumption*or*stocked*for*future*use* (change*in*inventories)* Intermediate*input*costs:*goods*entering*the*production*process,*being*completely*consumed*during*the*period*of* production* GVA:*the*value*of*output*in*intermediate*inputs* NVA:*the*value*of*output*after*consumption*of*fixed*capital* Consumption*of*fixed*capital:*Goods*not*entirely*consumed*during*one*period*of*a*process,*such*as*machinery*and* vehicles,*equipment.*They*are*considered*fixed*assets,*requiring*the*calculation*of*the*value*decline*in*one*accounting* period*n.* Note:*See*Annex&2*for*detailed*accounting*definitions** Figure&11:&Box&of&Equations&for&Production&Accounts& Source*of*data:*Bellù*(2013)* ! B)*Income*Account:*determine*how*value*added*(in*Net*Value*Added*terms)*is*shared*among*the* production*factors.*The*box*(Figure& 12)*lists*the*types*of*income*deriving*from*NVA*distribution.* The*results*were*expressed*in*profits*or*losses.* * * ! 32! Wages:&Payments*for*labor,*remuneration*of*family*labor*estimated*as*its*opportunity*costs& Interests:&Financial*resources,*e.g.*purchase*of*fixed*assets,*finance*of*working*capital,*i.e.*funds*of*inputs*costs& Rents:&Payment*for*natural*resources,*e.g.*land,*water.*Building*is*accounted*as*intermediate*inputs& Taxes:&payment*for*public*services.*Do*not*include*social*contributions*of*employees*or*household*taxes.& Profits:&Is*the*balance*of*the*Income*Accounts*the*calculation*is*done*by*the*equation:* & Profits"="NVA"–"(Wages"+"Interests"+"Rents"+"Taxes)" (6)" * Note:*See*Annex&2*for*detailed*accounting*definitions* Figure&12:&Box&of&derived&NVA&incomes&and&profits&equation& Source*of*data:*(Bellù,*2013)* C)*Calculation*of*the*interest*cost*on*fixed*capital* The*cost*of*an*asset*imputed*in*a*particular*period*needs*to*cover*the*interest*cost.*The*interests* depend*directly*on*the*value*of*the*asset*and*relates*to*the*consumption*of*fixed*costs*(Cf).*The* interest*cost*was*calculated*through*the*“Equivalent*Annual*Cost”,*as*specified*by*the*guidelines* (Bellù,* 2013).* Knowing* the* purchasing* price* Po* of* the* fixed* asset,* it* is* estimated* the* cost* C* imputed*to*each*of*the*n*periods*of*the*economic*life*of*the*asset*at*a*given*interest*rate*r.* ! = !"! ! !!! !!! !!! ! !! " " (7)" However,* the* Interest* component* (INT)* is* the* one* considered* in* the* “Income* account”* of* this* methodology,* which* disentangle* the* consumption* of* fixed* costs* from* the* interest* used* in* the* Income*account.*Therefore,*the*following*equation*was*used,*according*to*Bellù*(2013):** (8)" !"! = ! − !"#"" !"#! = !"! !(!!!)!!! (!!!)! !! ! −! & ! & (9)& & D)*The*choice*of*the*appropriate*discount*rate*(r)* The* benchmark* annual* average* interest* rate* (r)* in* Brazil* in* 2014* was* around* 10.90%.* The* expected*inflation*rate*(f)*was*6.41%;*according*to*official*data*from*the*Banco*Central*do*Brasil* ! 33! (2015).* The* risk* factor* premium* (s)* for* Brazil,* according* to* the* OECD* (2015)* risk* country* classification*is*3%.*In*this*sense,*the*Interest*rate*used*for*the*income*account*can*be*calculated* using*the*equation*(Bellù,*2013):* != (!!!.!"#)(!!!.!") (!!!.!"#$) , !"#$!!! = !!". !"%* * (10)* E)*Consolidation*of*the*Accounts*at*the*Value*Chain*Level* According*to*Bellú*(2013),*building*production*and*income*accounts*for*the*different*activities*and* agents* of* the* value* chain* occurs* in* various* steps.* * Firstly,* the* account* for* each* single* activity* is* calculated,* e.g.* production,* processing,* wholesaler,* retailers,* and* so* on,* using* the* same* unit* of* reference* (e.g.* output/ha).* Then,* each* value* chain* agent* is* aggregated.* For* the* effect* of* comparison*and*selection*of*target*groups,*the*results*were*clustered,*displaying*representatives* of* each* micro;basin* and* community.* * The* “technical* coefficient”* or* inputs,* and* the* “yield* coefficient”* or* outputs* are* separately* accounted.* Secondly,* the* analysis* “scales* the* factors".* Meaning* that,* the* accounts* of* a* single* agent* were* scaled* up* by* each* activity,* aggregating* different* activities* undertaken* by* the* same* agent.* Thirdly,* the* accounts* of* “group* of* agents”* scales* up* the* single* agents’* accounts* by* the* number* of* agents* in* that* group.* The* groups* were* assumed*to*be*homogeneous*and*representative*in*the*value*chain.* The* analysis* aggregated* all* accounts* of* all* agents* involved.* With* the* intention* of* consolidating* accounts*at*value*chain*level*it*is*required*to*sum*up*the*items*of*all*agents,*for*example*the*input* for*trader*is*the*same*as*the*output*of*producer*plus*the*trader*input,*and*so*on,*and*to*cancel* out* the* within;chain* flows,* which* are* suppressed* by* other* agents* of* the* value* chain;* the* final* balances*represents*the*Value*Added*(VA),*as*represented*in*Figure&13.* * Figure&13:&Example&of&value&chain&accounts& Extracted*from*(Bellù,*2013)* ! 34! 4.2.7. Market&Map&Framework& A* market* map* framework* is* an* analytical* tool* proposed* by* Hellin* &* Meijer* (2006).* The* map* contains*the*value*chain*actors;*the*enabling*environment*(infrastructure*and*policies,*institutions* and*processes*of*the*environments*that*shapes*the*market);*and*the*service*providers*(business* and*extension*services*for*the*chain)*that*could*potentially*provide*value*added*to*the*chain.*The* services* can* be* input* supplies,* market* information,* financial* services,* quality* assurance* and* support*for*product*development*and*diversification.*The*map*provides*an*assessment*of*policy* and* other* issues* that* might* be* hindering* or* enhancing* the* chain* functioning* and* also* identifies* the*services*offered*by*institutions.*Figure&14*illustrates*the*proposed*market*map*framework.* * Figure&14:&The&Market&Map&example&proposed&& Source:*(Hellin*&*Meijer,*2006)* 4.3. Tools&and&Instruments& 4.3.1. Data&Requirements&for&Value&chain&analysis& The* data* requirements* and* data* sources* to* implement* a* value* chain* analysis* were* established* according* to* the* guidelines* and* methodology* of* FAO* by* Bellù* (2013).* Data* requirements* were* related*to*the*production,*inputs*and*outputs,*trading,*processing,*and*distributors,*e.g.*wholesale* ! 35! market,*exporters,*and*so*on.*The*list*of*requirements*used*for*the*data*collection*in*this*study* can*be*visualized*in*Annex&1.* 4.3.2. Sampling& 4.3.2.1. Selection&of&the&study&area& The* selection* of* the* study* areas* is* in* accordance* the* INTECRAL* project* object* of* study.* The* decision* of* the* study* areas* occurred* during* the* kick;off* workshop* in* 2013* along* the* Brazilian* partnership,*with*the*institutions’,*government’*and*farmers*association’s*agreements.*From*the* seven* municipalities* comprising* the* general* study* of* the* INTECRAL,* two* areas* were* selected* primarily* for* this* research* –* Nova* Friburgo* and* Varre;Sai* –* respecting* the* pre;established* stakeholder*relationship.* 4.3.2.2. Selection&of&products& In* the* Northwest* Region,* coffee* was* chosen* due* to* its* socioeconomic* importance* in* Varre;Sai.* The*cultivation*is*mainly*the*conventional*(not*organic),*and*the*coffee*variety*is*Coffea*arabica,* characteristic*of*the*mountain*coffee.** In* the* Mountain* Region,* the* products* of* research* were* selected* and* refined* according* to* some* criteria.*First,*most*produced*vegetables*were*chosen.*From*them,*cauliflower*and*parsley*were* previously* selected* as* leaf* vegetables,* and* tomato* and* green* beans* were* selected* as* fruit* vegetables.*Second,*farm*models*designed*in*an*economic*study*performed*by*Rio*Rural*Program* and*FAO*in*the*State*Rio*de*Janeiro*helped*to*refine*the*selection*(SEAPEC;SDS*&*FAO,*2013).*The* farm* models* groups* (Lettuce,* watercress,* parsley* and* scallion,* cauliflower* and* sweet* corn)* and* (Tomato,*cucumber,*and*green*bean)*were*chosen.*However,*these*farm*models*were*projected* to* the* Mountain* Region* as* a* whole,* not* considering* differences* among* areas* within* the* same* region*(e.g.*Nova*Friburgo*and*Teresópolis).** Therefore,*during*the*fieldwork,*the*president*of*a*farmer*association*of*the*study*area*suggested* changing*some*products.*Watercress,*scallion,*sweet*corn*and*cucumber*were*removed*from*the* research;*Chinese*cabbage*and*beetroot*were*added,*to*better*suit*the*area*of*study.** ! 36! 4.3.2.3. Value&chain&sampling& The*sampling*used*in*this*study,*with*the*purpose*of*analyzing*the*value*chains*of*horticulture*in* the*Mountain*Region*and*coffee*in*the*Northwest*Region,*was*designed*as*represented*in*Table& 2.* The* research* plan* elaborated* followed* the* data* requirements* from* Bellù* (2013)* and* Hellin* &* Meijer*(2006).* Table&2:&Sampling&design&for&the&fieldwork& Sample& Sector& Type&of&data& Methodology& Time& Production* Socioeconomic*&* economic* Questionnaire,*observation* 8*days* Processing* Economic* Questionnaire*or*interview* and*observation* 1;2*days* Intermediaries* Economic* Interview*and*observation* 1;2*days* Wholesalers* Economic* Questionnaire*or*interview* and*observation* 4*days*in*total* Retailers* Economic* Institutional* Socioeconomic*&* Political* Inputs* vendors* Insufficient* Production* Socioeconomic*&* economic* Processing* Economic* Intermediaries* Economic* Interview*and*observation* 1*day* Cooperative* Economic* Interview*and*observation* 4*days*in*total* Institutional* Socioeconomic*&* Political* Exchange*of*information;* interview* Continuously*during* research* VALUE&CHAIN&B:&HORTICULTURE& N&=&30& Family&farmers& N&=&2& Mini&–&Processing&Plants& N&=&2& Middleman& N&=&2& CEASACRJ&and&Farmer’s&Market&in& Nova&Friburgo& N&=&2& Greengroceries,&local&market& Municipality,&EMATER,&SEAPEC,& PESAGRO,&farmer’s&associations& Agents&out&of&chain& Questionnaire*or*interview* and*observation* Exchange*of*information;* interview* Informal*talking*at*the* stores* 2*days* Continuously*during* research* 1*day* VALUE&CHAIN&A:&COFFEE& N&=&30& Family&farmers& N&=&3& Local&Roasters& N&=&2& Middleman& N&=&1& COOPERCANOL& Municipality,&EMATER,&SEAPEC,& PESAGRO,&farmer’s&associations& Questionnaire*and* observation* Questionnaire*and* observation* 8*days* 3*days* ** The*schedule*before*the*fieldwork*was*pretty*much*similar*to*the*acquired*sample.*The*sample* was* accomplished* according* to* the* available* resources* to* enable* the* research,* e.g.* accommodation,* mobility,* and* availability* of* people* interested* in* participating* and* helping* with* the*concretization*of*the*study.*Modifications*were*made*to*adapt*to*the*circumstances,*such*as* unavailability* of* interviewees* or* lack* of* interest* in* taking* participation* in* the* study.* Restrictions* occurred* mainly* in* private* enterprises,* intermediates* and* at* the* wholesale* market* (CEASA).* In* general,*the*contributions*of*the*farmers*to*this*research*were*very*generous*and*approachable,* likewise*public*institutions*involved*in*the*chain.* ! 37! 4.3.3. Data&source&and&collection&methods& 4.3.3.1. Literature&review& The*literature*review*was*necessary*for*this*study*to*gather*enough*information*and*knowledge* to* proceed* with* all* phases* of* research.* The* literature* was* consulted* in* the* conceptual* and* proposal* design,* during* the* preparation* for* the* fieldwork,* sampling* method,* means* of* data* collection,*and*in*the*final*written*report.*The*scientific*knowledge*and*secondary*data*used*the* following* sources:* web* search,* scientific* papers,* conference* proceedings,* institutional* database,* working* papers,* international* organizations* and* national* reports,* methodological* guidelines,* legislations,* censuses,* surveys,* institutional* statistics* databases,* including* domestic* and* international* sources.* Most* of* the* statistical* data* is* suggested* for* VCA* (Bellù,* 2013;* Bockel* &* Tallec,*2005).*For*organization*of*the*reviewed*literature*the*software*Mendeley*Desktop*version* 1.14*(Mendeley*Ltd.,*2015)*was*helpful*for*proper*and*standard*citation*and*referencing.* 4.3.3.2. Stakeholders&expert’s&consultation& This*part*of*research*consisted*of*establishing*a*solid*stakeholder*relationship*and*research*bases* of* knowledge* to* integrate* a* participatory* approach* and* acquisition* of* data.* In* this* sense,* the* consultation*included*the*Secretariat*of*Agriculture*and*Livestock*of*Rio*de*Janeiro*(SEAPEC),*the* technical* assistance* and* rural* advisory* service* (EMATER;Rio),* the* Corporation* in* Agricultural* Research* from* State* Rio* de* Janeiro* (PESAGRO),* the* Micro;watershed* Committees* (COGEM)* in* Nova* Friburgo* and* Varre;Sai* for* contact* with* the* farmers,* the* SIMA;RJ* from* PESAGRO* in* the* CEASA,* the* Seinp* Centre* the* in* CEASA* and* the* Farmer’s* Market* in* Nova* Friburgo,* the* COOPERCANOL* in* Varre;Sai,* the* Municipal* Secretariat* of* Agriculture* of* both* studied* cities,* and* other*local*agents*of*activities*of*the*value*chain*essential*for*the*study.* 4.3.3.3. Fieldwork& The*primary*data*sampling*happened*through*a*participatory*approach*and*Rapid*Rural*Appraisal* (RRA)* of* the* value* chains,* according* to* Bellù,* 2013* and* Bockel* &* Tallec,* 2005.* It* consists* of* informal* meetings* with* agents* or* group* of* agents,* e.g.* farmers,* retailers,* where* an* interview* is* carried*out*with*an*open*questionnaire*for*a*limited*sample.** The* sample* represented* a* range* from* 10%* up* to* 60%* of* the* total* number* of* the* farmers,* depending*on*the*product*and*region.*The*PEM*“Plano*Executivo*da*Microbacia”*(Executive*Plan* ! 38! of*the*Micro;watershed),*developed*by*the*PRR*(Rio*Rural*;*GEF,*2015a;*Rio*Rural*;*BIRD,*2014a,* 2014b;*Rio*Rural*;*GEF,*2015b),*gives*a*clue*of*the*sampling.*It*is*possible*to*infer*that*the*sample* of*this*study*represented*25%*of*coffee*growers*in*MB2,*and*15%*of*total*farmers*(all*activities,* including*coffee)*in*MB1.*In*horticulture,*it*embraced,*in*terms*of*producers,*10%*cauliflower,*20; 25%*tomato,*60%*lettuce,*60%*parsley,*40%*beetroot*and*15%*other*products*in*MB3*and*MB4.* The*means*of*research*used*in*the*fieldwork,*according*to*Hellin*&*Meijer*(2006)*were:* A)*Participant*observation:** A*collection*of*qualitative*data,*which*helped*with*a*greater*understanding*of*the*characteristics* of*the*situation*being*researched.*Jot*notes*were*made*to*gather*keywords*and*sentences*in*the* field;*photographs*were*also*an*excellent*source*of*documenting*the*observation.* B)*Semi;structured*interviews*and*focused*group*meetings:** Guided*conversations*with*predetermined*topics*and*during*the*conversation*new*insights*arose* as* a* result* of* the* discussion* and* analysis;* applied* to* one;to;one* conversations* and* groups’* interviews.* The* interview* was* used* for* some* agents* of* the* chain;* mainly* institutions* and* the* private* sector;* also* when* the* questionnaires* were* not* possible* to* be* applied* due* to* lack* of* transparency*of*the*shared*data.*The*focused*group*meetings*were*available*during*the*COGEM* meetings,*or*farmer*associations’*meetings,*where*the*discussions*provided*interesting*material* for*the*research.* C)*Questionnaires:* Quantitative* data* collected* for* a* more* objective* assessment* of* the* value* chain* actors.* The* questionnaire*was*designed*to*obtain*the*information:**“what)the)value)chains)actors)are)doing?”* and*“why)the)actors)are)doing)that?”*and*“how)they)formulate)their)decisions?”*(Hellin*&*Meijer,* 2006).* The* questionnaires* had* open* questions* or* closed* questions,* based* on* the* applied* works* (Bockel* &* Tallec,* 2005;* Gilbert,* 2006).* The* elements* of* the* survey* consisted* of* general* characteristics*(socioeconomic)*and*features*of*the*production*(farm*size,*labor,*large*and*small* equipment,* marketing),* and* also* information* regarding* farmer* organization* and* main* perceived* problems.*Appendices&1*and*2*display*the*used*farmer*questionnaires*in*horticulture*and*coffee* chain,* respectively.* Another* type* of* questionnaire* was* designed* for* upstream* agents.* All* questionnaires* were* based* on* the* * “data* requirements”* in*Annex& 1.* See* Appendices& 3,& 4,& 5,& 6,& and&7*for*consulting*upstream*agents*questionnaires.!* ! 39! 4.4. Data&Analysis& The* value* chain* analysis* was* accomplished* using* the* six* analytical* steps* as* reported* in* the* methodology*(Bellù,*2013).*The*results*show*a*diagnosis*of*the*value*chains.*Due*to*difficulties*of* the*“Value*Chain*Analysis*Software*FAO*VCA*Tool*3.2”,*all*functional*and*economic*analyzes*were* performed* manually.* The* Economic* analysis* credibility* can* be* checked* at* the* United* Nations* Statistical* Division* (UNSTATS),* in* the* document* “System* of* National* Accounts* (SNA)”* written* by* European*Commission*et*al.,*(2008).*It*was*used*the*“Wizard:*Statistics*&*data*Analysis*Software* for* Mac”,* version* 1.7.10* (Miller,* 2015)* for* the* statistical* analysis* of* the* data.* The* results* were* clustered* and* analyzed* to* generate* significant* outcomes.* Software* Lucid* Chart* (Lucid* Software* Inc.,*2015)*was*used*to*design*the*diagrams*and*charts*of*the*value*chains.* The* expected* result* of* this* study* is* the* characterization* of* the* two* studied* areas'* value* chains.* Additionally,* the* value* chain* map* was* a* good* representation* of* the* enabling* environment,* showing*the*constraints*and*synergies*among*agent*interactions*and*can*be*used*as*a*benchmark* for*institutional*interventions*at*the*decision;making*level.* * ! * 40! 5. CHATER:&RESULTS&AND&DISCUSSION&–&VALUE&CHAIN&A&(COFFEE)& 5.1. Step&1:&Socioeconomic&context&of&the&Value&Chain&A:&Coffee& 5.1.1. Panorama&of&the&Brazilian&coffee&economy& Coffee* in* Brazil* has* a* social* and* economic* importance* since* the* 18th* century* (MAPA,* 2015a).* Today,* Brazil* is* the* largest* producer* and* exporting* country* in* the* world* and* also* the* second* largest*consumer*of*the*product*(MAPA,*2015a).*The*world’s*total*coffee*production*(of*all*sorts)* in* 2014* was* 141,850* thousand* bags* of* 60kg.* Of* that,* Brazil’s* production* represented* 32%,* totalizing*45,342*thousand*bags*of*60kg*(International*Coffee*Organization,*2015d)*in*Table&3.** Table&3:&Total&coffee&production&expressed&in&thousand&bags&of&60kg&by&major&exporting&and&producer&countries& (2011C2014)& Country& Producer& 2011& Total& Production& 2012& Total& %& Production& 2013& Total& %& Production& 2014& Total& %& Production& %& Brazil& 43484& 32& 50826& 35& 49152& 34& 45342& 32& Vietnam* 26500* 19* 25000* 17* 27500* 19* 27500* 19* Colombia* 7652* 6* 9927* 7* 12124* 8* 12500* 9* Indonesia* 7288* 5* 13048* 9* 11667* 8* 9000* 6* Ethiopia* 6798* 5* 6233* 4* 6527* 4* 6625* 5* 136583& 100& 147562& 100& 146745& 100& 141850& 100& World& Table*updated*by*the*author*using*template*from*Vilela*&*Rufino*(2010).*Source*of*data:*(International*Coffee* Organization,*2015d)* Brazil* produces* the* two* most* important* species* of* coffee,* the* Coffea) arabica,* and* the* Coffea) canephora,*formerly*known*as*Arabica*and*Robusta,*respectively.*The*variety*Arabica*corresponds* to*73.7%*of*the*total*production*(Conab,*2015a).*As*reported*by*Conab*(2015a),*the*total*Brazilian* crop* area* for* both* coffee* varieties* is* estimated* to* be* 2,256,500* hectares.* Of* them* 1,933,120* hectares*(85.7%)*are*currently*in*production*and*323,381,4*hectares*(14,3%)*are*arising.*There*are* about* 287,000* producers,* which* are* predominantly* characterized* as* mini* and* small* holders* distributed*over*1,900*municipalities*within*15*Brazilian*states*(MAPA,*2015a).*Table& 4*presents* the*most*relevant*regions*and*states*of*coffee*production*in*Brazil.*Figure&15*shows*the*location* of*coffee*crop*areas*for*both*varieties*(Arabica*and*Robusta).** * ! 41! Table&4:&Total&coffee&production&in&the&period&2011C2015&expressed&in&thousand&bags&of&60kg&& Federation&Unit/Region& North& Rondônia* 2011& 2012& 2013& 2014& 2015& &1,612.3&& &1,534.0&& &1,478.7&& &1,546.0&& &1,673.1&& *1,428.3** *1,367.0** *1,357.0** *1,477.3** *1,604.5** Pará* *184.0** *167.0** *121.7** *68.7** *68.6** Northeast& &2,290.0&& &2,149.6&& &1,803.3&& &2,371.3&& &2,489.1&& Bahia* *2,290.0** *2,149.6** *1,803.3** *2,371.3** *2,489.1** &137.8&& &371.5&& &437.0&& &402.4&& &461.5&& *137.8** *124.1** *171.5** *165.8** *165.9** Goiás* *;** *247.4** *265.5** *236.6** *295.6** Southeast& &37,125.5&& &45,064.8&& &43,648.1&& &40,330.9&& &40,754.9&& Minas*Gerais* *22,181.0** *26,944.0** *27,660.0** *22,644.1** *23,973.0** Espírito*Santo* *11,573.0** *12,502.0** *11,697.0** *12,805.7** *12,088.5** Rio&de&Janeiro& &260.0&& &262.2&& &281.0&& &292.3&& &292.4&& Midwest& Mato*Grosso* São*Paulo* South& Paraná* *3,111.5** *5,356.6** *4,010.1** *4,588.8** *4,401.0** &1,842.0&& &1,580.0&& &1,650.0&& &558.6&& &1,100.0&& *1,842.0** *1,580.0** *1,650.0** *558.6** *1,100.0** Others& &476.6&& &126.5&& &134.5&& &132.5&& &132.6&& Brasil& &43,484.2&& &50,826.4&& &49,151.6&& &45,341.6&& &46,611.2&& Source:*adapted*from*(Conab,*2015b)* * Figure&15:&Map&of&the&coffee&producing®ions,&Coffea&arabica&and&Coffea"canephora& Source:*CETCAF*(2015).*Description:*Areas*of*coffee*production,*red*displays*Coffea)arabica*and*yellow*display*Coffea) canephora*or*robusta.*Note:*concentration*of*production*over*the*southeastern*Brazil.* ! 42! Brazil*exports*in*average*only*67%*of*its*total*production,*less*export*percentage*in*comparison*to* Colombia* and* Indonesia,* which* export* 77%* and* 81%* of* their* production* respectively* (International* Coffee* Organization,* 2015a).* Figure& 16* shows* the* total* coffee* export* in* thousand* bags*of*60kg*by*the*largest*producer*and*exporting*countries.* in&thousand&bags&of&60&kg& 40000* 35000* 30000* Brazil* 25000* 20000* Vietnam* 15000* Colombia* 10000* Indonesia* 5000* 0* 2010* 2011* 2012* 2013* & Figure&16:&Total&coffee&(of&all&sorts)&exports&expressed&in&thousand&bags&of&60&kg&by&major&exporting&countries&in&the& period&of&2010&to&2013& Chart*updated*from*Vilela*&*Rufino*(2010).*Source*of*data:*(International*Coffee*Organization,*2015a)* 5.1.2. Economic&performance&of&the&coffee§or& Coffee* is* one* of* the* main* exported* commodities,* being* the* fifth* agricultural* product* more* exported*in*the*country*(Conab,*2015b).*As*stated*in*a*statistical*report*of*(MAPA,*2015c),*Brazil* had*in*2014*total*coffee*gross*revenue*export*of*6.7*billion*US$*at*181.35*US$*a*bag*of*60kg,*as* seen*in*Table&5.** Table&5:&Total&export&quantity,&coffee&gross&revenue&and&average&price&of&the&coffee&bag& 2008& 2009& 2010& 2011& 2012& 2013& 2014& Quantity&(millions&of&bags)* 29.7* 30.5* 33.5* 33.6* 28.7* 32.0* 36.7* Value&(billion&US$)* 4.8* 4.3* 5.8* 8.7* 6.5* 5.3* 6.7* Average&price&&(US$/bag)* 160.20* 140.38* 172.11* 259.83* 224.90* 164.81* 181.35* & Source:*adapted*from*MAPA*(2015b)* According* to* Conab* (2015a),* coffee* is* economically* relevant* for* 15* producing* states.* Minas* Gerais,*Espírito*Santo,*and*São*Paulo*handled*together*89.88%*of*the*total*coffee*national*gross* ! 43! revenue*in*2014,*equivalent*to*R$*14,587,363.38.*However,*the*State*Rio*de*Janeiro*represented* only*0.71%*(Figure&17)*of*the*national*coffee*gross*revenue*share,*which*is*equal*to*R$*113,970.25* (Conab,* 2015a).* Additionally,* the* coffee* production* chain* generates* about* 8* million* jobs* in* the* country,*providing*income*and*access*to*the*basic*services*for*many*households*(MAPA,*2015a).* Rio&de&Janeiro& 0.71%& South&Region& 1.30%& Southeast&Region& 89.88%& North&Region& 2.00%& Northeast&Region& 5.31%& Midwest& 0.79%& * Figure&17:&Coffee&gross&revenue&share&in&percentage&by&producing®ion&and&the&state&Rio&de&Janeiro&highlighted&for& special&comparison& Source*of*chart:*elaborated*by*the*author,*data*taken*from*Conab*(2015a)* However,*the*coffee*production*activity*undergoes*a*strong*seasonality*called*biannual*cycle,*an* intrinsic* characteristic* of* the* coffee* crop,* which* causes* high* and* low* variances* of* annual* fruitfulness*(Silva*&*Reis,*2013).*In*agreement*with*the*same*authors,*the*matter*of*biannual*cycle* affects*the*commodity*supply*and*consequently*causes*prices*instability*in*the*market.*This*fact* poses* a* challenge* for* coffee* policies* and*for* the* producers,* which* are* required* to* have* storage* management*to*overcome*the*differences*of*annual*crops.** Figure&18*illustrates*clearly*the*effect*of*the*biannual*cycle*and*the*prices*fluctuation.*Years*with*a* high*peak*of*production,*such*as*1991,*1999*and*2002*had*a*profound*decrease*of*prices*of*the* coffee* bag* paid* to* coffee* growers* (International* Coffee* Organization,* 2015c).* Due* to* the* high* volatility* of* the* coffee* sector* income,* one* observes* problems* of* finance* for* the* coffee* activity* upon*financing*institutions,*and*a*weak*policy*frame,*which*doesn’t*give*enough*support*for*such* an*important*Brazilian*economic*sector*as*it*is*the*coffee*sector*(FAERJ,*1999).** ! 44! 50,000* $300.00* $250.00* 40,000* $200.00* 30,000* $150.00* 20,000* $100.00* 10,000* Total*producàon*in*bags*(60kg)* 2012* 2011* 2010* 2009* 2008* 2007* 2006* 2005* 2004* 2003* 2002* 2001* 2000* 1999* 1998* 1997* 1996* 1995* 1994* 1993* 1992* 1991* 0* $50.00* $0.00* Price&in&US$&per&bag&(60kg)&paid&to&growers&in& Brazil& $350.00* 1990* Brazilian&tota&cofffee&producnon&in&bags&of& 60kg& 60,000* Prices*in*US$*per*bag*(60kg)*paid*to*growers* * Figure&18:&Biannual&cycle&of&the&Brazilian&Coffee&in&the&calendar&years&from&1990&to&2012& Chart*elaborated*by*the*author.*Source*of*data:*(International*Coffee*Organization,*2015d,*2015c)* 5.1.3. Coffee&production&in&the&state&of&Rio&de&Janeiro& The*State*of*Rio*de*Janeiro*has*once*been*one*of*the*greatest*coffee*producers*in*Brazil.*The*State* reached* 3.5* million* bags* of* coffee* in* the* past* (FAERJ,* 1999),* supplying* 60%* of* the* national* production.* Due* to* phytosanitary* problems,* Rio* de* Janeiro* had* almost* eradicated* the* planted* crops*in*the*70's*(Andrade*et*al.,*2009;*Andrade*&*Silva,*2013).*The*State*Rio*de*Janeiro*has*a*total* coffee*crop*area*of*12,783*ha*currently,*producing*a*total*of*292.3*thousand*bags*of*60kg*in*2014* or* 0.64%* of* the* national* production* (Conab,* 2015a).* The* average* productivity* is* of* 22.87* processed*bags*ha;1*(Conab,*2015b).*The*evolution*of*the*crop*area*and*the*productivity*over*the* period*from*2001*to*2015*is*represented*in*Figure&19,*conforming*to*Conab*(2015b).** 22* 20* 18* 16* 14* 2015* 2014* 2013* 2012* 2011* 2010* 2009* 2008* 2007* 2006* 2005* 2004* 2003* 2001* 12* Rio&de&Janeiro&average&yield& (bags&60kg/ha)& 24* 2002* 15,000* 14,500* 14,000* 13,500* 13,000* 12,500* 12,000* 11,500* 11,000* 10,500* 10,000* 10* Crop*in*formaàon*area* (ha)* Crop*in*producàon*Area* (ha)* Average*yield*(bags* 60kg/ha)* * Figure&19:&Rio&de&Janeiro’s&total&crop&area&(ha)&and&yield&(bags&60kg/ha)&from&2001&to&2015& Chart*elaborated*by*the*author.*Source*of*statistic*data:*(Conab,*2015b)* ! 45! The* literature* revealed* that* the* Fluminense’s*production* showed* a* decreasing* trend* in* the* 90’s* (FAERJ,* 1999).* More* updated* data* from* the* IBGE* (2015e)* shows* that* the* production* recovered* slightly*from*the*drop.*However,*it*has*never*recovered*the*previous*historical*records*entirely.*As* Andrade* &* Silva* (2013)* affirm,* the* state* of* Rio* de* Janeiro* lost* 26.4%* of* harvested* area,* an* equivalent*to*4,634*ha*of*the*productive*area*in*the*period*from*1990*to*2010.*The*same*authors* explain*that*the*reduction*is*due*to*the*eradication*of*coffee*crops*happened*in*the*70’s*added* the* insufficient* new* expansion* of* rehabilitated* crops.* Andrade* et* al.* (2002)* say* that* the* production* area* stagnated* over* the* past* years* regardless* the* demand* within* the* state* RJ.* The* Figure&20*illustrates*the*problematic*stated*above*by*representing*the*evolution*of*the*harvested* 450* 17,000* 400* 16,000* 350* 15,000* 14,000* 300* 13,000* 250* 12,000* 200* 11,000* 150* 10,000* 9,000* 100* 8,000* 50* Harvested*Area*(ha)* Total&producnon&in&thousand&bags&of&60&kg& 18,000* 1990* 1991* 1992* 1993* 1994* 1995* 1996* 1997* 1998* 1999* 2000* 2001* 2002* 2003* 2004* 2005* 2006* 2007* 2008* 2009* 2010* 2011* 2012* 2013* Total&Harvested&area&(ha)&& area*and*the*production*of*coffee*bags*in*the*State*RJ*in*23*years.* Producàon*(thousand*bags*of*60kg)* * Figure&20:&Evolution&of&the&harvested&area&and&production&in&the&State&of&Rio&de&Janeiro&(1990C2013)& Chart*generated*by*the*author.*Source*of*data:(IBGE,*2015e;*FAERJ,*1999)* The*current*production*of*Rio*de*Janeiro*concentrates*in*the*Northwest*Region*and*the*Mountain* Region*(Andrade*et*al.,*2009).*Figure&21*displays*the*producing*municipalities*of*the*State*Rio*de* Janeiro.* The* frequency* of* production* ranges* from* “high”* to* “some”* to* “no”* coffee* activity* production*within*cities,*according*to*the*last*coffee*diagnosis*of*the*State*Rio*de*Janeiro*(FAERJ,* 1999).** ! 46! * Figure&21:&Location&of&the&coffee&production&activity&in&the&municipalities&of&the&State&Rio&de&Janeiro& Map*generated*by*the*author*using*IBGE*cartographic*base*(IBGE,*2015c).*Source*data*of*coffee*production*locations* and*frequency*of*production*extracted*from*FAERJ*(1999)* The* largest* coffee* producers* in* Rio* de* Janeiro* are* the* municipalities* Bom* Jesus* do* Itabapoana,* Porciúncula,* and* Varre;Sai* in* the* Northwest* Region;* Bom* Jardim,* Duas* Barras* and* São* José* do* Vale*do*Rio*Preto*in*the*Mountain*Region*(Andrade*et*al.,*2009).*Rio*de*Janeiro*has*in*total*2,269* coffee* growers,* whose* majority* (75.4%)* has* property* size* ranging* between* 10* and* 50* hectares* (FAERJ,*1999).*Table&6*displays*the*detailed*information*of*Rio*de*Janeiro’s*coffee*production.* Table&6:&Rio&de&Janeiro’s&coffee&production&in&2013& ! Metropolitan* N°&of& producers& 1* Production& (tons)& 14.40* Percentage& (%)& 0.07%* Mid;south* 4* 6.00* Três&Rios& Mid;south* 3* Trajano&de& Morais& Duas&Barras& Mountain* 30* Mountain* São&José&do& Vale&do&Rio& Preto& Bom&Jardim& Mountain* Cardoso& Moreira& Campos&dos& Goytacazes& Municipality& RJ&Region& Area&(ha)& Value&(R$)& Duque&de& Caixias& Vassouras& 6.00* 42,048.00* 0.03%* 2.50* 48,000.00* 65.20* 0.31%* 59.00* 311,004.00* 135.00* 0.65%* 45.00* 274,050.00* 49* 963.50* 4.65%* 403.00* 4,316,480.00* 12* 1,404.00* 6.78%* 624.00* 6,542,640.00* Mountain* 92* 1,663.80* 8.04%* 1,124.00* 4,874,934.00* North* 3* 6.00* 0.03%* 6.00* 12,000.00* North* 18* 23.50* 0.11%* 22.00* 94,000.00* 47! São&Fidélis& North* 12* 30.00* 0.14%* 30.00* 90,000.00* Natividade& Northwest* 12* 25.20* 0.12%* 28.00* 109,368.00* Itaperuna& Northwest* 17* 31.50* 0.15%* 18.00* 126,000.00* Bom&Jesus&do& Itabapoana& Porciúncula& Northwest* 240* 3,240.00* 15.65%* 1,400.00* 13,510,800.00* Northwest* 836* 5,953.00* 28.76%* 4,235.00* 24,466,830.00* VarreCSai& Northwest* 940* 7,140.00* 34.49%* 4,759.00* 27,988,800.00* Total& RJ* 2,269* 20,701.10* 100.00%* 12,761.50* 82,806,954.00* Adapted*from:*(EMATER;Rio,*2013a)* 5.1.4. Fluminense’s&Northwest&Region&coffee& The* Northwest* Region* is* the* largest* coffee* producer* of* the* state,* counting* with* 79.17%* of* the* total* Rio* de* Janeiro’s* coffee* production* (EMATER;Rio,* 2013a).* Despite* the* hilly* topography,* the* climate,* and* the* soil* are* adequate* for* the* production* and* additionally* there* is* a* tradition* of* cultivating*coffee*(Andrade*et*al.,*2014).*Andrade*et*al.*(2002)*and*Andrade*&*Silva*(2013)*affirm* that* the* coffee* in* Rio* de* Janeiro* is* characterized* by* technicians* as* “Mountain* coffee”.* Because* coffee*is*produced*mainly*in*mountainous*areas*predominantly*strong;wavy*to*hilly*areas,*mostly* without* the* possibility* of* mechanization.* Additionally,* it* can* be* said* that* in* the* State* Rio* de* Janeiro,* the* technological* pattern* of* the* coffee* sector* is* seen* as* very* low,* resulting* in* low* productivity*(Andrade*&*Silva,*2013).* Due*to*the*deficient*industrialization*of*the*region*and*energy*supply*limitations,*the*agricultural* coffee* production* has* been* and* is* the* most* important* source* of* livelihood* for* the* local* population* (Andrade* et* al.,* 2009).* Therefore,* in* the* Northwest* Region,* coffee* crops* have* to* be* incentivized* to* develop* and* to* generate* jobs,* since* it* is* the* main* crop* produced* in* many* municipalities*(Andrade*et*al.,*2014).** Besides* that,* the* coffee* sector* is* characterized* by* the* biannual* cycle,* which* affects* the* coffee* supply*causing*fluctuations*of*prices*and*instability*for*the*coffee*growers*(Silva*&*Reis,*2013).*The* farmers*are*then*squeezed*between*the*inputs*provider*and*the*middlemen,*which*set*the*prices* and*concentrate*the*value*(Gilbert,*2006).* The*coffee*production*activity*in*the*Northwest*needs*improvement,*to*keep*farmers*motivated* to*work*in*the*region,*and*also*to*avoid*the*rural*exodus,*which*has*occurred*recently*in*the*area* (Andrade*et*al.,*2009).*According*to*Andrade*&*Silva*(2013),*the*Northwest*Region*would*play*a* central*role*in*the*potential*increase*of*production*areas*within*Rio*de*Janeiro.*They*say*it*can*be* achieved*by*adjusting*adequate*technologies*and*by*incorporating*efforts*at*the*state*RJ*decision; ! 48! making*level*towards*the*development*of*programs*aiming*the*reclamation*of*the*Fluminense’s* coffee*activity.* 5.1.5. Production&in&the&Study&Area& Table&7*displays*the*production*in*bags*of*60kg*of*coffee*in*the*1st*and*2nd*cropping*years*of*the* studied*areas.*The*results*show*the*biannual*cycle*and*annual*productions,*and*the*average*yield* of*bags*per*hectare*year;1.** Table&7:&Production&in&bags&of&60kg&by&community&and&by&MicroCbasin&(biannual&cycle&2012C2013)& Community& Production& (Bags&of&60kg)& MicroCBasin& Total& Boa&Ventura& Degredo& Santa&Cruz&I& MB1& MB2& 65*±*28.425* 136.142*±* 121.377* 357.409*±* 384.024* 91.211*±* 43.672* 357.409*±* 384.024* 188.817&±& 137.093& 780* 953* 3,931.5* 1,733* 3,931.5* 5,664.5& 119.375*±* 30.446* 260*±* 245.854* 433.045* ±347.366* 171.184*±* 83.226* 433.045*±* 374.366* 267.2&±& 140.739& Total&2 &cropping& year& 1,432.5* 1,820* 4,763.5* 3,252.5* 4,763.5* 8,016& Mean&biannual& cycle& 184.375*±* 56.456* 396.143*±* 365.059* 790.455*±* 756.671* 262.395*±* 125.428* 790.455*±* 756.671* 456.017&±& 276.043& Total&biannual& cycle& 2,212.5* 2,773* 8,695* 4,985.5* 8,695* 13,680.5& Mean&annual& production& 92.188*±* 28.227* 198.071*±* 182.53* 395.227*±* 378.335* 131.197*±* 62.739* 395.227*±* 378.335* 228.008&±& 138.021& Total&annual& production& 1,106.25* 1,386.5* 4,347.5* 2,492.75* 4,347.5* 6,840.25& Yield&bags/&ha& C1 year & 22.3* 28.1* 29.8* 24.5* 29.8* 26.4& st Mean&1 &cropping& year& st Total&1 &cropping& year& nd Mean&2 & cropping&year& nd All* communities* and* micro;basins* presented* equal* statistical* means,* due* to* the* high* variation,* following*a*pattern*of*low*production*in*the*1st*cropping*year*and*an*increase*of*production*in*the* 2nd* cropping* year.* Although* the* means* are* equal,* MB2,* despite* representing* fewer* farmers* in* number,*produces*much*more*in*comparison*to*the*MB1,*which*accounts*for*the*majority*of*the* interviewees.*One*can*note*that*fact*in*the*1st*cropping*year*(MB1*median*80;*MB2*median*185)* ! 49! and* also* in* the* 2nd* cropping* year* (MB1* median* 129;* MB2* median* 250).* However,* this* does* not* reflect*on*the*average*yield,*which*is*similar*in*the*communities*and*micro;basins.** Moreover,* it* was* observed* a* positive* correlation* (Correlation* test,* p* =* 0.026)* between* the* average* yield* and* the* annual* average* production.* Meaning* that* the* increased* production* in* its* totality* is* linked* to* an* increase* in* production* yield.* Figure& 22* illustrates* the* results* of* the* described*facts,*where*all*points*represent*the*interviewed*farmers.* * Figure&22:&Positive&correlation&between&annual&average&production&(total&coffee&bags&of&60kg)&and&production&yield&of& C1 bags/ha&year & 5.1.6. Household&socioCeconomic&survey&of&Value&Chain&A& The* samples* presented* similar* proportions.* MB1* “Ribeirão* da* Onça”* had* a* frequency* of* 63.3%,* and* MB2* “Varre;Sai”* 36.7%* of* the* total* interviewees,* at* 5%* of* significance.* All* communities* presented* equal* proportions;* “Boa* Ventura”* represented* 40%,* “Santa* Cruz”* I,* 36.7%,* and* “Degredo”*23.3%*of*the*interviewees.*One*can*markedly*observe*that*two*communities*belong*to* MB1,* due* the* nature* of* the* data* collection* conducted* through* the* extension* of* stakeholder* network*(one*interviewee*lead*to*the*next*one).*Table&8*shows*the*detailed*information.* Table&8:&Community&and&MicroCbasin&Relation&(Value&Chain&A)& MicroCbasin& MB1& MB2& ! Community& Relative&frequency&to&the&total& Relative&frequency&to&theµCbasin& Boa*Ventura* 40.0%* 63.2%* Degredo* 23.3%* 36.8%* Santa*Cruz*I* 36.7%* 100%* 50! 5.1.6.1. Age&Group& The*group*age*of*the*households*presented*a*normal*and*uniform*distribution,*with*an*estimated* mean*of*49.333*±*5.426*years.*The*population*tends*to*be*within*the*groups*of*mature*adult,*and* aged.*It*is*noted*a*characteristic*aging*population,*wherein*50%*of*the*households*are*≥*50*years* old,*and*20%*are*≥*60*years*old*(Table&9).*Considering*≥*60*years*as*an*elderly*group,*according*to* the*Brazilian*by;law*for*senior*citizens9.*The*aging*population*has*a*bold*impact*in*the*labor*force,* since*the*young*population*of*coffee*growers*(20;30*years*old)*is*very*reduced*(only*7%).** Table&9:&Group&of&age&in&the&observed&population&(Value&Chain&A)& Age&Group& Relative&Frequency& Accumulated&Frequency& 70*≤*Age*≤*80* 13%* 13%* 60*≤*Age*<*70* 7%* 20%* 50*≤*Age*<*60* 30%* 50%* 40*≤*Age*<*50* 20%* 70%* 30*≤*Age*<*40* 23%* 93%* 20*≤*Age*<*30* 7%* 100%* The*same*aging*population*pattern*is*observed*in*the*micro;basins*(MB*mean*=*47.263*±*6.36;*MB* mean* =* 52.909* ±* 11.175),* and* in* the* communities,* presenting* equal* statistical* means.* The* distribution*of*age*by*community*is*represented*in*Figure&23.*This*result*is*in*agreement*with*the* coffee*diagnostic*in*State*Rio*de*Janeiro*(FAERJ,*1999).*The*rural*exodus*is*another*contribution,* strengthening* underemployment* and* migration* of* young* people* to* other* economic* centers* (Ferreira,*2013).* (ANOVA,)p)=)0.428)! & Figure&23:&Age&distribution&byµCbasin&and&by&community&with&tCtest&estimated&means&& !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 9 Brazilian*classification*of*group*age*is:*children*up*to*12*years,*teenagers*from*12*to*18*years,*adult*from*18*to*59,* elderly*equal*or*more*than*60*years*old*(Brasil,*2003,*1990) ! 51! 5.1.6.2. Gender& The*household’s*gender*profile*resulted*in*a*predominance*of*male,*with*an*unequal*proportion* of*6.7%*±*9.7%*female,*against*93.3%*±*9.7%*of*male.*Representing*1*woman*to*14*men,*in*this* observed*population*(2*counting*records*in*population*N=30,*5%*significance).*However,*it*does* not* reflect* that* women* are* not* participant* of* family* farming,* but* rather* that* in* coffee* growing* there*is*a*patriarchy*tradition,*in*which*men*are*considered*the*head*of*the*family,*and*were*then* the*ones*interviewed.* 5.1.6.3. Marital&status& The* majority* of* the* households* are* married* (90%)* and* few* are* single* (10%).* There* was* no* incidence* of* divorce* or* separation* or* widowed.* Figure& 24* illustrates* the* distribution* by* micro; basin.* It* is* observed* that* there* is* homogeneity* within* the* sample* regarding* the* marital* status,* which*reinforces*the*participation*of*both*gender*male*and*female*as*a*core*of*family*farming,*as* previously*stated.* (z-score, p = 0.900) * Figure&24:&Marital&status&byµCbasin& 5.1.6.4. Occupation& Five*categories*of*profession*besides*“farmer”*were*identified,*as*seen*in*Figure&25.*The*majority* is*considered*just*“farmer”*with*73%*of*frequency*in*the*observed*sample.*It*is*remarkable*that* some*property*holders*found*themselves*as*“farmer”*and,*also,*one*profession*more,*e.g.*driver,* entrepreneur,* chemist,* etc.* There* is* one* farmer* in* the* condition* of* retired.* The* “entrepreneur”* category* refers* to* activities* related* to* coffee* milling* or* coffee* roasting.* When* comparing* both* micro;basins,*it*was*encountered*significant*difference*(z;score,*p*=*0.009)*in*the*relation*of*the* category*“farmer”*by*micro;basin.*The*majority*of*just*“farmers”*are*in*the*MB1*(89.5%),*verified* ! 52! by*the*very*dark*spot*on*the*Model*residual*graph*(Figure&25).*However,*the*MB2,*near*the*urban* center,* has* a* larger* variety* of* profession,* including* all* the* other* categories* (60%),* seen* by* the* lighter*disperse*spots.* * Figure&25:&Profession&total&distribution&and&residual&byµCbasin& 5.1.6.5. Literacy&level& In*general,*the*observed*sample*presented*median*in*the*level*“incomplete*primary*education”,* representing*46.7%*of*the*households.*It*was*detected*a*statistically*significant*difference*in*the* level* of* education* of* MB1* and* MB2.* The* level* of* education* in* MB1* can* be* considered* lower* in* relation* to* MB2.* The* minimum* education* level* in* MB1* is* “illiterate”,* and* the* maximum* level* is* “secondary* education”.* In* MB2,* there* wasn’t* illiteracy* observed,* and* there* is* a* significant* difference* in* the* maximum* level* of* literacy* “tertiary* education”* (Table& 10).* The* lower* level* of* education* is* an* issue* of* significance,* to* call* for* an* improvement* of* educational* services* in* the* rural*area*of*Varre;Sai,*particularly*in*more*distant*rural*areas,*such*as*MB1*“Ribeirão*da*Onça”.*It* is* important* to* note* that* the* age* of* the* interviewees* interferes* on* the* result* of* literacy.* Considering*that*the*education*in*the*rural*area*was*lower*by*the*time*they*were*in*schooling*age.* Table&10:&Literacy&level&of&households&byµCbasin& Literacy& Illiterate& Incomplete& primary& education& Primary& education& Incomplete& secondary& education& Secondary& education& Tertiary& education& Min&& Max&& Median&& MB1& 15.79%* 52.63%* 15.79%* 10.53%* 5.26%* 0.00%* Illiterate* Secondary* education* Incomplete* primary* education* MB2& 0.00%* 36.36%* 9.09%* 9.09%* 18.18%* 27.27% Incomplete* primary* education* Tertiary* education* Primary* education* Total& 10.0%* 46.7%* 13.3%* 10.0%* 10.0%* 10.0%* Illiterate* Tertiary* education* Incomplete* primary* education* MB& A* A *significant*difference*(z;score,*p*=*0.016)* ! 53! 5.1.6.6. Household&income&and&size& Household*size*presented*a*normal*distribution*with*an*estimated*mean*4.267*±*0.635*at*5%*of* significance.* The* household* size* “4”* usually* represents* the* couple* and* a* pair* of* children* or* another*dependent*person.*One;third*(33%)*is*in*between*2*≤*Household*size*<*4*(from*no*up*to*2* children).*Nearly*one;third*is*between*5*≤*Household*size*<*6*(3*to*4*children),*as*seen*in*Table&11.* These* results* are* consistent* with* FAERJ* (1999),* which* also* identified* an* average* of* 2;3* children* per*household.* Table&11:&Household&size&range&and&frequency&within&observed&population& Household&size& &Raw&count& Relative&frequency& 6*≤*Household*size*≤*8* 6* 20%* 5*≤*Household*size*<*6* 9* 30%* 4*≤*Household*size*<*5* 5* 17%* 2*≤*Household*size*<*4* 10* 33%* The* relation* of* household* size* by* community* is* illustrated* in* Figure& 26.* The* figure* shows* the* household*size*in*“Degredo”*tends*to*be*larger*(mean*5.286*±*1.276)*and*in*“Santa*Cruz*I”*tends* to*be*smaller*(mean*3.545*±*0.919).*The*factor*age*could*be*one*variable*interfering*in*this*matter* since*in*“Santa*Cruz*I”,*the*population*is*older*than*50*years*on*average.*Thus,*their*children*are* no*longer*living*with*them.*Also*could*be*a*matter*of*household*income,*discussed*further.* !!!Degredo! !!!!!!Santa!Cruz!I! * Figure&26:&Household&size&by&community&showing&tCtest&estimated&means&and&predicted&household&size&vs.&age&for& Degredo&and&Santa&Cruz&I.& The* household* income* survey* was* performed* in* a* non;intimidating* way.* The* families* could* choose*a*range*of*minimum*wages,*that*at*the*period*of*research*2014*was*R$*724,00,*to*express* ! 54! their* monthly* household* income* (summing* all* income* of* all* contributing* households,* including* those*not*linked*to*the*farm).*The*results*showed*that*the*frequency*of*the*lowest*income*range* (≤*1*min.*wage)*was*observed*only*in*the*MB1,*representing*47.4%*of*income*range*in*this*micro; basin.** Both* communities* in* MB1* presented* significant* lower* income* range,* 41.7%* (≤* 1* min.* wage)* in* “Boa*Ventura”,*and*57.1%*(≤*1*min.*wage)*in*“Degredo”.*The*event*was*not*observed*in*MB2,*or* in* “Santa* Cruz* I”.* One* household* didn’t* want* to* answer.* The* MB2* (“Santa* Cruz* I”)* presented* comparative*higher*income*range*frequency*in*relation*to*the*other*two*communities,*with*54.5%* of*middle*income*(1*≤*min.*wage*≤*3)*and*18.2%*of*the*highest*income*range*(≥*12*min.*wage).** Figure&27*illustrates*the*household*income*range*by*community.* Figure&27:&Household&income&by&community&(right)&and&dots&by&household&size&(left)& Another*important*point*of*consideration*is*the*relation*of*household*income*and*household*size.* It*is*predicted*that*“Degredo”,*with*the*size*of*family*6.188,*has*more*probability*to*have*a*lower* income*range*of*(≤*1*min.*wage).*One*points*out*that*the*size*of*the*family*has*an*adverse*relation* with*household*income*(Figure&27)*left*side.* ! 55! 5.1.6.7. Property&profile& Households* were* asked* about* the* nature* of* their* property,* to* evaluate* land* tenure* rights.* The* survey*revealed*that*70%*of*the*households’*property*is*owned,*and*30%*is*granted.*Granted*has* higher*frequency*in*the*case*of*farmers*in*the*condition*of*“meeiro”,*a*sharecropper,*which*crops* in*someone*else’s*land*and*shares*the*resulted*crop*value*with*the*owner*of*the*property.*Many* of*landowners*have*sharecroppers*in*their*land,*working*as*a*family*farming*member.*The*main* reason*is*that*coffee*growers*follow*rigid*labor*and*environmental*laws,*in*order*to*preserve*the* biodiversity*and*to*respect*coffee*workers*(MAPA,*2015a).*And*sharecroppers*can*be*considered* as*partners*of*the*production*rather*than*a*worker.*They*also*have*a*contract*relation,*applying*a* rate*to*the*proceeds*from*the*sale*of*production,*and*entitled*benefits*under*the*law*(Paragraph* 8* Article* 195* of* the* Federal* Constitution,* Brasil,* 1988).* The* granted* property* showed* a* higher* frequency* in* the* MB1* (36.8%),* with* a* higher* incidence* in* the* community* of* “Degredo.* It* represented* more* than* half* of* the* properties* as* granted* (57.1%* of* MB1).* Less* of* this* condition* incidence*was*in*MB2*(18.2%).* Households* were* also* asked* about* the* size* of* their* property,* including* cultivated* coffee* land,* grazing* land,* and* forest* fragments.* Regarding* the* size* of* the* property,* it* is* observed* that* the* micro;basins*studied*have*considered*small*properties*with*an*estimated*mean*=*23.649*±*9.791* ha.*The*distribution*is*not*normal*and*not*uniform*(Figure&28).*There*is*clearly*a*predominance*of* small*farm*sizes,*and*few*larger*small*farms.** * Figure&28:&Distribution&of&farm&size.&Not&uniformly&distributed&(KolmogorovCSmirnov,&p&<&0.001)& ! 56! There* was* no* statically* difference* of* property* sizes* between* MB1* and* MB2;* both* micro;basins* presented*a*concentration*of*small*farm*size*(MB1*=*17.626*±*8.931*ha;*MB2*=*34.051*±*23.154* ha).*The*difference*between*them*is*that*MB2*presented*the*maximum*property*size*in*100*ha,* and*MB1*maximum*of*70*ha,*as*medium*property*size.*The*majority*holds*small*properties*(83%* less* than* 50* ha)* and* few* hold* larger* properties* (3%* more* than* 100* ha).* This* result* implies* that* there* is* a* concentration* of* the* distribution* of* land* in* the* region.* It* is* very* characteristic* of* the* profile* the* Brazilian* production* by* family* farming* (IBGE,* 2006a).* According* to* FAERJ* (1999),* the* majority*of*coffee*growers*in*Rio*de*Janeiro*State*is*smaller*than*50*ha,*which*is*considered*small* for*the*coffee*activity.*In*the*Northwest,*properties*are*in*average*smaller*than*45*ha,*highlighting* the* importance* of* coffee* growing* socioeconomically* for* the* region* (FAERJ,* 1999).* In* this* study,* 70%*of*all*households*has*farm*smaller*than*20*ha*and*43.3%*less*than*10*ha.*Table&12*shows*the* distribution*by*property*size*ranges*in*the*studied*population.* Table&12:&Farm&size&range&of&the&observed&population&in&raw&count,&relative&and&accumulative&frequency& Farm&size&(ha)& Count& Relative&frequency& Accumulative&frequency& 100*≤*farm*size*(ha)*≤*110* 1.00* 3.3%* 100.0%* 90*≤*farm*size*(ha)*<*100* 1.00* 3.3%* 96.7%* 70*≤*farm*size*(ha)*<*80* 1.00* 3.3%* 93.3%* 60*≤*farm*size*(ha)*<*70* 1.00* 3.3%* 90.0%* 50*≤*farm*size*(ha)*<*60* 1.00* 3.3%* 86.7%* 30*≤*farm*size*(ha)*<*40* 2.00* 6.7%* 83.3%* 20*≤*farm*size*(ha)*<*30* 2.00* 6.7%* 76.7%* 10*≤*farm*size*(ha)*<*20* 8.00* 26.7%* 70.0%* 0*≤*farm*size*(ha)*<*10* 13.00* 43.3%* 43.3%* The*cultivated*area*shows*a*similar*behavior*of*concentration,*as*the*farm*size*presented.*There*is* a* positive* correlation* between* farm* size* and* cultivated* area* (Correlation* test,* p* <* 0.001).* It* suggests* that* the* farmers* interviewed* have* as* their* principal* economic* activity* coffee* growing.* Other* activities* such* as* livestock* production* and* area* intended* to* forest* conservation* at* the* mountains*are*present,*but*they*are*not*the*main*developed*activity*within*the*farm.* Figure& 29& shows*the*correlation*between*farm*size*and*cultivated*area*in*hectares.* ! 57! * Figure&29:&Positive&correlation&between&farm&size&(ha)&and&cultivated&area&(ha)& 5.1.6.8. Findings&of&the&household&survey& The* economic* survey* was* useful* to* detect* the* most* vulnerable* groups* in* micro;basins* and* communities.*It*is*considerable*that*the*population*of*coffee*growers*in*the*region*is*aging;*this* implies*difficulties*in*the*labor*force*and*also*impacts*on*the*production*costs.*The*predominance* of* married* is* a* real* characteristic* of* the* core* of* family* farming.* In* general,* the* MB1* is* at* a* comparative* disadvantage* in* relation* to* the* MB2,* mainly* the* community* “Degredo”,* which* presented* the* lower* indicators.* One* of* the* reasons* might* be* the* distance* of* MB1* to* the* urban* center.*According*to*this*study*MB1*the*most*vulnerable*socioeconomic*group*comparatively.*The* MB2*presented*better*indicators*due*to*the*facility*and*proximity*to*the*urban*center*of*Varre;Sai,* which*suggests*that*the*public*services*are*in*need*of*improvement*and*expansion*to*distant*rural* areas.* The* interviewed* farmers* can* be* considered* in* the* profile* as* family* farming,* since* the* properties*are*in*its*majority*considered*small*for*the*coffee*activity.* 5.2. Step&2:&Demand&for&coffee&value&chain&outputs& 5.2.1. Coffee&demand&–&consumption&and&market&trends& Coffee* is* an* important* commodity* worldwide,* which* is* produced* mainly* to* supply* developed* industrialized* countries* (Vilela* &* Rufino,* 2010).* The* largest* coffee* importing* countries* are* the* USA,*Germany,*Italy,*Japan*and*France*(International*Coffee*Organization,*2015b).*Table& 13*lists* Brazil’s* most* important* destinations* of* coffee* export.* The* largest* volume* exported* is* of* coffee* ! 58! Arabica* with* a* total* of* 29,416,575* bags* of* 60kg.* Other* sorts* of* coffee* such* as* Robusta,* soluble,* and*roasted*also*have*many*destinations*(CeCafé,*2015).* Table&13:&Destination&of&the&Brazilian&coffee&exports&by&type&of&coffee&expressed&in&60kg&bags&in&2014&& Destination&country& Arabica& Robusta& Soluble& Roasted& Total& %& USA& 5,570,631* 1,010,120* 595,727* 10,261* 7,186,739* 19.78* Germany& 6,437,382* 178,120* 115,715* 742* 6,731,959* 18.53* Belgium& 2,362,808* 636,196* 1,000* 62* 3,000,066* 8.25* Italy& 2,618,290* 127,305* 85,711* 3,743* 2,755,049* 7.58* Japan& 2,326,785* 0* 287,769* 2,882* 2,617,436* 7.20* Other&countries& 10,100,679* 1,495,077* 2,345,803* 7,766* 14,029,325* 39.0* Total&export& 29,416,575* 3,446,818* 3,431,725* 25,456* 36,320,574* 100.0* Source*of*data:*adapted*from*(CeCafé,*2015)* According* to* the* statistical* report* by* the* International* Coffee* Organization* (2015e),* the* total* world*coffee*consumption*in*2014*was*149,265,000*bags*of*60kg.*Brazil*consumed*domestically* 20,771,000*bags*of*coffee*in*2014*with*an*annual*growth*rate*of*2,0%.*The*Brazilian*coffee*market* represents* 14%* of* the* global* demand,* having* a* prominent* position* as* second* largest* consumer* country*after*the*USA*(Figure&30).** all&expornng& countries&except& Brazil& 17%& others& 25%& European& Union& 28%& Brazil& 14%& USA& 16%& * Figure&30:&World&coffee&consumption&in&percentage&by&country&or&group&in&2014& Chart*elaborated*by*the*author.*Source*of*data:*(International*Coffee*Organization,*2015e)* The* Brazilian* consumption* of* roasted* ground* coffee* in* 2014* was* 4.89kg/inhabitant* year;1,* equivalent* to* 6.12* kg* of* the* green* coffee* grain,* or* 81* liters/inhabitant* year;1* (ABIC,* 2015a).* The* Brazilian* coffee* consumer* market* has* the* potential* to* increase* when* comparing* to* the* top* ! 59! ranking*traditional*markets.*Countries*such*as*Finland,*Norway,*and*Denmark*have*much*higher* consumption*per*capita*of*12.3,*9.7*and*8.7*kg/inhabitant*year;1,*respectively*(CeCafé,*2012).*As* stated* Abreu* et* al.* (2013),* the* Brazilian* coffee* needs* to* be* changed* in* perspective.* Not* only* maintain* the* status* of* greatest* coffee* commodity* producer* and* exporter* in* the* world* but* also* develop*new*strategies*to*be*competitive*with*the*higher*quality*and*specialized*coffee*markets.* 5.2.2. Coffee&consumption&in&the&State&Rio&de&Janeiro& Rio* de* Janeiro* State* is* the* second* largest* Brazilian* coffee* consumer* of* Brazil* after* São* Paulo* (Andrade*&*Silva,*2013).*Rio*de*Janeiro*consumes*in*average*1.35*million*bags*of*processed*coffee* annually,*which*corresponds*to*around*10%*of*the*Brazilian*domestic*consumption*(CCCRJ,*2015;* Andrade* et* al.,* 2009;* Andrade* &* Silva,* 2013).* However,* the* state* produces* only* 0.64%* of* the* national* production* (Conab,* 2015b).* The* high* demand* is* supplied* through* imports* from* other* Brazilian*states*producers.*Therefore,*it*is*necessary*to*increase*the*production*within*the*state*RJ* (Andrade*et*al.,*2009;*Andrade*&*Silva,*2013).* A*study*on*the*coffee*consumption*trends,*conducted*by*ABIC*&*MAPA*(2010),*used*the*city*of* Rio* de* Janeiro* among* others* as* sampling.* The* study* revealed* that* coffee* is* the* second* most* regularly* drink* consumed,* just* behind* water.* And* it* is* the* most* drink* consumed* among* its* substitutes,*e.g.*hot*chocolate*and*tea.*The*consumer*location*shifted*from*home*to*out*of*home* consumption,*an*increase*of*307%*in*eight*years.** According*to*the*same*study,*the*prevalence*of*consumption*is*still*the*ground*filtered*traditional* coffee.*However,*the*consumption*of*special*coffees*has*increased*over*the*last*eight*years,*from* 1.5%*in*2003*to*2.3%*in*2010.*People*would*pay*more*for*more*quality*and*sustainability*of*the* production,*as*revealed*in*the*research.**It*is*noteworthy*the*position*of*consumption*in*Rio*de* Janeiro* because* it* hosts* around* 1* million* tourists* annually,* and* this* requires* high;quality* coffee* products*to*make*the*Brazilian*coffee*image*worldwide*(CCCRJ,*2015).* Trends*in*consumer*preferences*have*changed*regarding*the*desire*for*more*quality,*as*well*as,* for*the*use*of*different*blends,*different*consumption*locations,*various*preparation*methods*and* diversification* of* the* coffee* use* (FAERJ,* 1999).* Following* Abreu* et* al.* (2013),* the* new* trends* in* the* world* coffee* market* are* driven* towards* added* value* products* that* engage* the* competitiveness*in*the*coffee*sector:* * * ! 60! I. Geographic* Indications* of* Origin* or* Denomination* of* Origin:* Associates* quality* and* reputation*of*a*particular*coffee*production*geographic*origin;*a*good*strategy*to*enhance* profits*particularly*for*small*productions*in*delimited*areas** II. High*quality*and*specialized*coffee:*Transforms*coffee*into*a*specialized*product*and*not* any* more* seen* as* commodity,* for* instance,* espressos,* aromatized* coffees,* and* special* roasting*and*grinding*methods* III. Certified* coffee:* Differentiates* coffee* produced* through* sustainable* standards* and* fair* trade*instruments;*the*certification*prevents*the*producer*to*suffer*from*consequences*of* price*fluctuation*in*the*market* IV. Partnerships* with* private* sector:* The* private* sector* may* help* to* include* small* coffee* farmers*by*corporate*social*responsibility,*which*is*increasingly*demanded*by*the*society* V. Increase*national*consumption*by*countries*producers:*Increase*the*demand*in*emerging* economies*and*countries*producers*is*essential*to*avoid*stagnation*of*the*coffee*sector* 5.2.3. Demand&for&outputs&in&the&Northwest&Region& Table& 14* represents* the* demand* of* the* output* provided* by* the* three* roasters* interviewed* in* Varre;Sai.* All* of* the* three* roasters* provided* locally,* e.g.* in* the* Northwest;* some* provided* regionally,*e.g.*other*regions*of*the*State*Rio*de*Janeiro;*or*areas*nearby,*e.g.*Minas*Gerais*and* Espírito*Santo.*Sale’s*price*varies*from*R$*8.00*to*R$*15.00*a*kilogram,*depending*on*the*product* and*brand.* Table&14:&Demand&for&value&chain&outputs&–&Roasters&products,&prices&and&demand&in&2014& & Type&of&products& Roaster&1& Roaster&2& Traditional*roasted*ground*coffee* (250;500g);* Traditional*roasted*and*ground* Extra;strong*roasted*and*ground* coffee;* coffee*(250;500g);* Espresso*coffee;* Espresso*roasted*beans*(5kg)* Brand*name*“Vargas”* Brand*“Fuerza”* Roaster&3& Roasted*ground*coffee*and* roasted*beans* 5*different*brands:*Patusko,*K; Sai,*Varre;Sai,*Delim,*Monte* Azul* R$*10.80*“Patusko”* Sale&price&(R$)&per& kilogram&(Kg)& R$*8.00*traditional* R$*10.00*traditional* R$*12,00*special*line*(espresso)* R$*15.00*special*line*(espresso)* R$*10.00*“K;Sai”* R$*8.00*“Delim”* R$*10.50*“Monte*Azul”* R$*9.00*“Varre;Sai”* ! 61! Local*markets*and*retailers;* Type&of&consumer& Wholesalers*in*other*Rio*de* Janeiro*regions,* Minas*Gerais*and*Espírito*Santo* Traditional*coffee*Northeast*Region* (RJ),*"Região*dos*Lagos",*70%*for*the* Northwest*Region*(RJ);* Special*coffee*espresso*destination*to* Regional*supermarkets*in*the* Northwest*Region*(RJ)* capital*RJ*and*Mountain*Region* According*to*the*data*acquired*from*EMATER*during*the*expert’s*consultation,*the*price*paid*to* coffee*growers*in*Varre;Sai*per*kilogram*of*green*coffee*was*R$*3.92*in*2013*and*R$*5.27*in*2014.* In*this*research,*the*results*are*similar*to*the*EMATER.*The*price*(R$/kg)*in*2013*paid*to*coffee* growers*was*in*average*R$*2.85,*or*R$*171.38*a*bag*of*60kg*of*coffee.*In*the*previous*year*2012,*it* was*in*average*R$*5.23*the*kilogram,*or*R$*313.81*the*bag*of*60kg.*Figures& 31& and& 32*show*the* range*of*prices*paid*to*the*interviewees.*The*variation*of*prices*is*due*to*differences*in*quality*of* coffee*or*the*bargaining*power*of*some*recognized*and*respected*farmers.** * Figure&31:&Prices&in&Reais&(R$)&paid&to&interviewed&farmers&per&kilogram&(kg)&of&green&coffee&in&2012& * Figure&32:&Prices&in&Reais&(R$)&paid&to&interviewed&farmers&per&kilogram&(kg)&of&green&coffee&in&2013& ! 62! 5.2.4. Quality&of&Rio&de&Janeiro’s&coffee& The*Brazilian*Legislation*has*a*particular*manner*of*grading*coffee*Arabica,*which*can*be*classified* by* cupping* according* to* the* Normative* Ruling* (IN)* 16/2010* (MAPA,* 2010)* for* the* roasted* and* ground*roasted*coffee.*Table&15*describes*the*coffee*grading*system*under*the*Normative*Ruling* (IN)*08/2003*for*the*green*coffee*by*MAPA*(2003)10.* Table&15:&Official&Brazilian&coffee&grading&system&& Classification& Description& Strictly&soft&& Aroma*and*flavor*markedly*as*“soft”* Soft&drink& Pleasant,*mild*and*sweet*aroma*and*flavor** Softish& Slightly*sweet*and*soft*flavor,*without*astringency*or*roughness*taste* Hard& Bitter*taste,*astringent*and*rough,*no*rare*palates* “Riado”& Slightly*typical*iodoform*taste* “Rio”& Typical*and*sharp*iodoform*taste* “Rio&zona”& Sharp*aroma*and*flavor*likely*to*iodoform*or*carbolic*acid* Source:*Normative*Ruling*(IN)*08/2003*for*the*green*coffee*(MAPA,*2003)* Many* coffee* experts* of* the* State* affirm* that* the* participation* of* low;quality* coffee* of* the* type* "Rio"*is*still*high*in*the*state*of*Rio*de*Janeiro.*Despite,*40%*of*the*coffee*produced*in*Norwest* Region* has* been* already* considered* the* finest* natural* coffee,* prepared* by* the* wet* method* (Barbosa,*2010).*Coffee*“Rio”*acquired*its*name*from*the*exporting*port*of*coffee*grains*in*former* times,* and* the* lower* quality* coffee* from* that* port* usually* was* called* "riado”.* All* carioca* coffee* was* by* then* related* to* a* weaker* coffee,* usually* produced* in* Rio* de* Janeiro’s* lands* (Martins,* 2012).*“Rio”*coffee*has*acquired*this*bad*reputation*and*still*faces*bottlenecks.*The*low;quality*is* attributed* to* the* expensive,* scarce,* and* not* specialized* labor* force;* and* also* to* the* lack* of* processing*machinery,*which*would*improve*the*conditions*of*commercialization*(Barbosa,*2010).* Coffee,*which*is*the*main*crop*of*the*city*Varre;Sai,*live*with*a*stigma*of*low*quality*due*to*the* origin* ;* * "Rio"* Coffee* ;* which* gives* low* competitiveness* in* the* domestic* market.* Monoculture* alone*is*disadvantageous*because*of*price*volatility*and*seasonality*of*production*(Ferreira,*2013).* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 10 Note:* The* IN* 007/2013* repealed* IN* 16/2010;* no* updated* Normative* Ruling* has* been* published* after* repealing* by* MAPA. ! 63! 5.3. Step&3:&Institutional&set&up&of&value&chain&A& “A)Associação)está)parada,)mas)a)união)não)deixou)de)existir.)Existe)o)COGEM”) Zé)Erêneo)–)coffee)grower)in)Degredo) 5.3.1. Brazilian&Coffee&Legislation&framework& The*Brazilian*legislation*for*coffee*has*been*developed*since*1927* (MAPA,*2015b).*According*to* MAPA* (2015a),* the* coffee* growers* follow* rigid* labor* and* environmental* laws,* to* preserve* the* biodiversity* and* to* respect* the* coffee* workers.* Additionally,* an* extensive* legislation* on* coffee* processing* has* been* developed* to* regulate* the* coffee* quality,* set* standards* and* good* manufacturing* practices,* etc.* (ABIC,* 2015b).* Table& 16* gives* some* examples* of* coffee* legislation* relevant*for*the*purpose*of*this*study.* Table&16:&Brazilian&coffee&legislation&& Legislation& Name& Regulator& Description& Date&of&issue& Type& Establishes*maximum*limit*of*tolerated*residues* 8*October* Land* and*contaminants*for*pesticide*control* 2010* Management* purposes* Normative& Establishes*specific*Technical*Normative*for*the* 25*September* Land* MAPA* Ruling&N°&49& Integrated*coffee*production* 2013* Management* Normative& Establishes*Technical*Regulation*for*roasted* MAPA* 24*May*2010* Processing* Ruling&N°16& coffee*beans*and*ground*roasted*coffee* Normative& Approves*Technical*Regulation*of*identity*and* MAPA* 11*June*2003* Processing* Ruling&N°8& quality*for*the*milled*green*coffee*classification* Define*management*of*plague*coffee*borer* Ordinance& Land* MAPA* (Hypothenemus)hampei)*for*phytosanitary* 17*July*2014* 711/2014& Management* emergencies* Ordinance&N°& Metrologic*Regulation*to*determine* INMETRO* 19*May*2008* Metrologic* 153& standardization*of*net*content*of*products* Ordinance&N°& Technical*Regulation*for*Standard*Operating* 21*October* ANVISA* Processing* 275& Procedure*for*food*industrializers* 2002* Technical*Regulation*for*hygienic*and*sanitary* Ordinance&SVS& ANVISA* conditions*and*good*manufacturing*practices* 30*July*1997* Processing* N°&326& for*food*industrializers* ResolutionCRCD& Approves*Technical*Regulation*for*coffee,* 22*September* ANVISA* Processing* N°&277& barley,*tea,*yerba;mate*and*soluble*products* 2005* Civil* Established*the*rights*for*temporary*farming* Law&N°&11.718& 20*June*2008* Labor*legislation* cabinet* worker* Normative& Provides*surveillance*for*the*eradication*of* 5*October* MTE;SIT* Labor*legislation* Ruling&N°91& work*in*conditions*analogous*to*slavery* 2011* Approves*regulatory*standard* Ordinance&N°&86& MTE* safety*and*health*at*work*in*agriculture,* 3*March*2005* Labor*legislation* livestock,*forestry*and*aquaculture** Provides*the*tax*fees*ICMS*in*operations* Decree&N°& 11*November* RJ*State* involving*goods*which*make*part*of*the*basic* Commercialization* 32.161& 2002* food*basket.* Data*compiled*by*the*author,*source*of*search:*(ABIC,*2015b;*MAPA,*2015b;*Brasil,*2008,*2011,*2005;*Governo*do* Estado*do*Rio*de*Janeiro,*2002)* Normative& Ruling&N°&026& ! MAPA* 64! Due* to* rigid* labour* laws,* many* farmers* decide* to* carry* out* a* form* of* partnership* with* sharecroppers,*to*reduce*labour*costs.*The*frequency*of*the*type*of*work*in*the*study*area*is*in* Figure&33.*It*is*observed*that*more*than*half*is*family;based*work*(54%),*in*which*the*property*is* family* owned,* and* the* members* manage* the* economic* activities* within* the* farm.* The* second* prevalent*type*of*work*is*the*sharecropping*system*(26%).*This*fact*is*advantageous*in*terms*of* reducing* costs* and* avoiding* more* bureaucracy* for* the* property* owner.* However,* in* terms* of* institutional*assistance,*sharecroppers*find*themselves*in*a*disadvantage*position*to*the*property* owners.* Sharecroppers* usually* have* more* difficulties* in* getting* funding* or* credit,* or* taking* participation* in* governmental* programmes,* as* reported* by* the* sharecropper* respondents* themselves.** Temporary* job* (11%)* is* also* one* category* of* work* very* common* during* the* harvest* period,* and* usually* is* a* more* costly* type* of* labour* (around* R$* 50.00* up* to* R$80.00/day).* Legislation* exists* (Law* N°* 11.718)* to* protect* the* rights* of* the* temporary* job,* since* temporary* workers* are* not* registered,* and* the* payment* is* done* commonly* in* some* hampers* collected* in* a* day.* Farmers* reported*that*the*inspection*is*strict,*especially*when*it*comes*to*labour*issues*and*the*conditions* of*security*and*health*of*rural*workers.* sharecroppers& 26%& family&work& 54%& hired&permanent& job& 9%& temporary&job& 11%& * Figure&33:&Work&category&percentage&in&respondent&producers& 5.3.2. Farmer’s&organizational&structure11& Varre;Sai* has* an* associative* history* marked* by* politics* and* deception.* The* sensation* is* that* the* time*hasn’t*past,*and*they*are*still*experiencing*the*“Café*com*Leite”*politics*of*the*old*republic.* The* local* government* exerts* a* strong* influence* over* the* population,* who* fears* missing* the* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 11!Note: This excerpt was written based on the fieldwork observation, daily life expereience with local farmers and personal talks with people involved, cooperatives assembly, interviews and farmer’s questionnaires.! 65! ! “gained”*perks*on*the*exchange*of*favours.*The*local*institution*ruling*Varre;Sai*has*contributed* to*the*unsustainable*rural*development*in*the*way*its*policy*is*conducted.*As*a*matter*of*fact,*the* interests* are* purely* aimed* at* winning* votes* and* keeping* quiet* opponents,* and* additionally* not* giving*the*necessary*support*to*institutional*bodies*engaged*in*the*rural*development.* 5.3.2.1. Associations&of&“Degredo”,&“Boa&Ventura”&and&“Santa&Cruz&I”& According* to* the* local* community,* the* association* of* “Degredo”* was* subjected* to* blackmail* by* politics.*Predecessor*mayors*sought*to*win*local*votes*in*return*for*favours,*ultimately*destroyed* the* association* and* with* them* the* belief* of* the* farmers* on* the* power* of* the* associations.* The* improper*use*of*the*associations,*as*a*way*of*money*transfer*in*the*past*by*the*local*government,* resulted* in* the* bankruptcy* of* the* association,* leaving* an* enormous* debt,* and* a* dirty* name.* In* addition,*the*most*influential*farmers,*who*could*rise*the*moral*of*the*association*were*hired*in*a* position*of*trust*in*the*city*hall,*which*withdrawn*the*opposition.** The*association*of*“Boa*Ventura”,*on*the*other*hand,*has*achieved*benefits*for*the*community,* like* school* transport,* patrol* for* roads,* and* machinery* for* processing* coffee* of* the* Rio* Rural* Program.*It*seems*the*farmers*feel*more*united*in*“Boa*Ventura”*than*in*“Degredo”.*The*COGEMs* have*improved*the*sense*of*union,*according*to*associates12.** The*community*of*Santa*Cruz*I*showed*a*more*cultural*valorization*inside*the*community*values,* e.g.*tourism*and*crafts.*Besides*that,*farmers*usually*are*more*influent*on*the*coffee*business*in* the*city,*in*comparison*to*the*other*micro;basin.*Most*of*them*are*part*of*the*association,*plus* COOPERCANOL,* plus* COGEM 13 .* Government* has* actuated* in* the* community* with* coffee* processing*machinery*to*help*improve*coffee*quality*(Governo*do*Estado*do*Rio*de*Janeiro,*2013).* 5.3.2.2. COOPERCANOL& The*history*of*the*COOPERCANOL*“Cooperativa*de*Produtores*de*Café*do*Noroeste*Fluminense”* is* not* much* different* from* that.* According* to* “Zé* Ferreira”* (See& Appendix& 8),* the* cooperative* exists* since* 1977.* Formerly* there* was* also* the* FAVS* “Federação* das* Associações* de* Varre* Sai”) originated*in*1994,*which*also*was*a*local*cooperative,*today*is*deactivated.*The*cooperative*was* also*politicking*target*and*ended*up*in*the*hand*of*a*minority.*According*to*him,*it*lacked*appeal* to* capitalize* and* continue* construction* of* the* cooperative.* All* this* time* the* COOPERCANOL* has* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 12 *Personal*conversation*with*Antonio*José*“Moreno”,*president*of*“Associação*dos*Pequenos*Produtores*de*Boa* Ventura”** 13 *Data*according*to*farmers*questionnaires* 66! ! been*disabled*because*of*the*decline*of*the*producers*in*taking*participation*and*also*because*of* a*minority*involved*aiming*exclusively*theirs*interests*(Appendix&8).* Recently,* new* generation* farmers* on* the* administration,* with* new* vision* and* interests,* have* made*efforts*to*revive*the*COOPERCANOL14.*The*reactivation*of*COOPERCANOL*has*been*possible* due* to* investment* of* R$* 1.7* million* by* the* BNDES* “Banco* Nacional* de* Desenvolvimento* Econômico*e*Social”,*and*“Banco*do*Brasil”*through*the*Sustainable*Rural*Development*Strategy* (DRS).*The*amount*adds*up*to*an*additional*R$*830,000*committed*by*the*Ministry*of*Agriculture,* Programs*Rio*Rural*and*Rio*Café*(SEAPEC,*2015b).*The*cooperative*has*been*recently*launched*on* July*16th,*2015*(See*Appendix&9*;*photos*of*the*construction*of*COOPERCANOL).* The*goal*is*to*add*value*to*coffee,*sell*inputs*at*fairest*prices,*offer*farmer*benefits,*buy*coffee*at* more*reasonable*price,*and*help*the*regulation*of*the*price*of*coffee*in*the*region,*improve*the* quality* of* coffee,* provide* technical* support,* and* standardize* coffee.* Additionally,* it* aims* the* inclusion* of* the* small* holder,* which* has* more* difficulty* of* selling* due* quality* and* quantity.* Moreover,* the* cooperative* tends* to* improve* the* commercialization* of* coffee* domestically* and* also* potential* exportation.* The* cooperative* will* mill* the* coffee,* and* select* the* quality* for* exportation,* and* the* residue,* for* domestic* market* (Interview* with* José* Ferreira* Pinto* “Zé* Ferreira”,*2014,*see*Appendix&8).** 5.3.2.3. Farmers&discernment&of&the&associations& There* is* still* the* need* for* engagement* of* the* farmers* who* do* not* believe* in* the* cooperative* operating*potential.*After*many*stories*of*failures*in*associations*and*cooperatives,*small*farmers* do* not* feel* motivated* to* "waste* time"* with* associations* that* don’t* function* properly* and* don’t* benefit* them.* They* have* lost* the* union* to* work* associated* with* common* goods.* The* adverse* position* to* the* associations* and* cooperatives* still* prevails.* However,* the* interviews* conducted* revealed* something* surprising.* Some* respondents* presented* a* positive* view* of* associations,* regarding* the* COOPERCANOL* and* the* COGEM,* which* is* the* organizational* unit* of* the* implementation*programme*of*Rio*Rural.** This*fact*reinforces*the*importance*of*the*programme*and*the*organizational*structure*in*building* a*community*union*sense*and*hope*that*things*can*work*if*the*farmers*are*organized.*Detail:*the* COGEM*was*not*even*asked,*the*farmers*mentioned*about*it.*The*focus*of*the*interview*was*on* the*COOPERCANOL.*The*coordinator*of*the*EMATER*said*that*some*farmers*in*MB1*got*territorial* Pronaf*aid*and*received*collective*pulping*machines,*concrete*yards,*and*coffee*dryers,*from*the* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 14 *COOPERCANOL,*cooperate*assembly,*February*13th,*5pm*2014 ! 67! Rio* Rural,* merely* because* they* have* been* organized* and* united.* The* results* of* farmer’s* perceptions*regarding*the*cooperative*and*association*are*displayed*on*Table&17.* Table&17:&Farmer’s&perception®arding&the&associations&and&cooperatives&in&VarreCSai& Positive&position& Negative&position& ⋅ The*benefits*only*depend*on*the*producers* ⋅ Too*much*politics* ⋅ COGEM*is*the*new*force*of*union* ⋅ Lack*of*confidence,*lack*of*unity* ⋅ Association*helps*in*a*way* ⋅ Prefers*to*associate*with*other*states* ⋅ COOPERCANOL*will*work* ⋅ Association*does*not*help*much* ⋅ COOPERCANOL*will*help*in*commercialization*and* reduce*the*sale*to*the*middleman* ⋅ Never*heard*of*COOPERCANOL** COOPERCANOL*will*never*work* Would*attend*the*coopercanol*if*it*worked* ⋅ ⋅ COOPERCANOL*have*all*the*producer*needs*for*coffee* production* ⋅ "Evil*eye"*of*the*founders*of*coopercanol* ⋅ ⋅ Do*not*want*to*get*involved*anymore* ⋅ COOPERCANOL*will*progress* ⋅ Association*is*over* ⋅ Intends*to*participate*in*the*COOPERCANOL* ⋅ Lack*producer’s*belief* ⋅ Dryers*projects,*pulping,*machine*patrol,*micro;tractor* from*the*COGEM* ⋅ Associations*are*slowly,*little*agenda*and*lack* project* ⋅ COOPERCANOL*worked*hidden*and*is*now*revealing* ⋅ The*association*only*works*40%*properly* ⋅ COOPERCANOL*'s*founders*have*all*almost*died* ⋅ After*30*years*stopped*is*hard*to*reactivate* ⋅ Do*not*like*to*participate*any*association* ⋅ Very*tangled,*do*not*have*interest* ⋅ Confusion*of*administration.* Note:*Table*created*based*on*the*farmer’s*questionnaires* 5.3.3. Institutional&Support& The*central*governmental*institutions*linked*to*agriculture*acting*in*Varre;Sai*are*the*Ministry*of* Agrarian* Development* (MDA)* and* the* Secretariat* Agriculture* and* Livestock* of* the* state* Rio* de* Janeiro* (SEAPEC).* Together,* these* institutions* have* set* a* sort* of* projects* in* the* micro;basins* in* Varre;Sai,* contributing* to* the* investments* of* coffee* dryers,* pulping* machines,* concrete* yards* from*the*Rio*Rural*Project*–*SEAPEC.*There*was*provided*alternatives*for*the*coffee*growers,*such* as*rotational*grazing*for*livestock*production,*and*Private*reserve*of*natural*heritage*(RPPN)*with* additional*green*VAT*for*forestry*conservation.*Besides*that,*the*institutions*have*contributed*to* the* reactivation* of* the* COOPERCANOL,* Pronaf* credit* for* small* farmers,* Rio* Café* program,* according* to* expert’s* consultation* research* and* previous* literature* review* in* this* study.* Along* ! 68! with* them,* some* other* institutions* are* also* contributing* to* the* value* chain.* They* are* worth* of* listing:* I. EMATER;RIO*unity*Varre;Sai:*The*Emater;Rio,*together*with*the*Secretariat*of*Agriculture*and* Livestock*and*the*Superintendency*of*Sustainable*Development*in*the*State*of*Rio*de*Janeiro,* performs*the*technical*assistance*and*rural*extension*work*in*the*micro;basins*supported*by* the* Rio* Rural* Program,* through* meetings* of* Management* committees* of* micro;basins* (COGEMs)*(EMATER;Rio,*2015).* II. PESAGRO;RIO:* The* Agricultural* Research* Corporation* of* the* State* of* Rio* de* Janeiro* (PESAGRO;RIO),*“Empresa*de*Pesquisa*Agropecuária*do*Estado*do*Rio*de*Janeiro”,*develops* works*with*coffee*through*the*Center*for*Research*and*Development*of*Dairy*Cattle*CEPDPL* in* Itaocara* in* the* Northwest* Fluminense.* PESAGRO* have* conducted* research* with* dense* coffee,*quality*improvement*and*diagnosis*of*the*state*of*coffee.*In*addition,*PESAGRO;RIO*is* a* founding* member* of* the* Brazilian* Consortium* for* Research* and* Development* of* Coffee* (PESAGRO;RIO,*2014).* III. FAERJ* System:* The* Federation* of* Agriculture,* Livestock* and* Fisheries* of* the* State* of* Rio* de* Janeiro* (FAERJ),* “Federação* da* Agricultura,* Pecuária* e* Pesca* do* Estado* do* Rio* de* Janeiro”,* represents* the* small* holder* in* the* civil* society,* contributing* to* conflict* resolution* and* permanent*adequacy*of*laws*and*public*policies*in*the*Rio*de*Janeiro*state.*The*FAERJ*System* supports*the**“Bule*Cheio”*Programme,*created*in*2010*by*Senar;Rio*(National*Rural*Training* Service),*with*the*aim*to*promote*the*economic*viability*of*farms*through*technical*training*in* the*technology*transfer*process*to*intensive*production*of*coffee*(Sistema*FAERJ,*2015).* 5.3.3.1.&Farmer’s&perception&of&the&institutional&support& The* farmer’s* perception* about* the* institutional* support* is* in* Figure& 34.* Compliments* or* complaints*regarding*the*classifications*“excellent”*“very*good”,*“good”,*“fair”,*“neutral”,*“bad”,* or*“awful”*are*related*to*the*participation*in*the*programs*and*access*to*governmental*supports.* For*instance,*the*negative*complaints**(20%)*are*due*to*the*lack*of*assistance,*the*lack*of*interest* of* the* farmer* or* no* need* for* participating* the* governmental* support.* Some* of* the* respondents* reported* that* they* were* left* out* of* the* micro;basin* selection* for* receiving* the* assistance.* The* neutral*(17%)*respondents*didn't*want*to*express*their*opinion,*but*most*of*them*participates*in* the*Pronaf*or*don’t*need*any*assistance.** The* compliments* seen* were* good* (40%),* very* good* (10%)* and* excellent* (3%),* summing* up* the* majority* of* the* respondents* (53%).* Respondents* said* that* Rio* Rural* improved* the* conditions* of* ! 69! the*farmer,*elevated*the*moral,*and*helped*to*hold*the*farmer*in*rural*areas.*These*farmers*also* have*access*to*the*Pronaf,*they*have*had*access*to*new*agricultural*equipment*and*machinery*for* coffee* processing,* and* they* were* satisfied* with* the* extension* of* EMATER* and* the* micro;basin* Program.* They* suggested* more* help* on* acquiring* subsidies* for* inputs,* improve* farmer’s* education,* and* provide* more* tractors* for* the* community.* The* overall* perception* is* that* the* institutions*are*making*the*difference*in*the*region,*and*without*them,*the*rural*area*wouldn’t*yet* hold*so*many*farmers*in*their*activities,*as*reported*by*themselves.* 40%& 17%& 17%& 10%& 10%& 3%& awful& 3%& bad& neutral& fair& good& very&good& excellent& * Figure&34:&Farmer’s&perception&frequency&in&relation&to&the&institutional&support& 5.4. Step&4:&Input&and&output&markets& 5.4.1. The&coffee&marketplace& The*most*common*commercialization*channel*is*through*the*middleman*(67%),*or*the*local*trader* commonly* called* the* broker,* who* buy* directly* from* producers* and* sell* to* other* locations.* Local* roasters*are*also*representative*in*the*commercialization*(22%),*but*there*are*only*three*roasters* in*the*city*of*Varre;Sai.*The*little*percentage*goes*for*other*local*market*or*interstate*sale*(Minas* Gerais*and*Espírito*Santo).** The*presence*of*the*middlemen*in*the*trade*of*coffee*is*usually*frowned*upon*the*coffee*growers* respondents*of*this*research.*In*general,*farmers*demonstrated*a*discontentment*regarding*the* price*of*the*coffee.*It*was*a*frequently*reported*complaint.*According*to*them,*prices*of*coffee*are* low*to*pay*back*investments.*Farmers*have*a*disadvantage*trade;off,*in*which*the*goods*are*held* (in* storage)* at* the* maximum* time* as* possible* till* a* great* opportunity* buyer* appears.* However,* most*of*them*reported*the*incapability*to*keep*the*storage*for*long,*because*they*are*forced*to* ! 70! sell* at* an* undesirable* price* to* pay* back* investments.& Figure& 35* shows* the* distribution* of* sales* commonly*carried*out*by*the*coffee*growers*of*the*micro;basins*studied.* interstate&sale& 8%& roaster& 22%& local&market& 3%& middleman& 67%& * Figure&35:&Commercialization&channel&by&the&coffee&growers&respondents& According* to* the* interviewed* brokers,* the* interstate* trade* is* very* difficult* due* to* higher* transaction*taxes*and*fees,*which*does*not*make*it*worth.*Nevertheless,*the*interstate*trade*is*yet* more*attractive*than*the*local*one,*since*the*coffee*industry*in*the*State*Rio*de*Janeiro*has*been* impaired.* According* to* FAERJ* (1999),* the* decline* of* roasting* and* grinding* industry* is* due* the* disparities* in* the* tax* burden* of* ICMS* (Merchandise* and* Services* Circulation* Tax* –* VAT* English* acronym),*within*the*state*of*Rio*de*Janeiro.*For*roast*and*ground*coffee*is*charged*VAT*of*7%,* because*it*composes*the*basic*food*basket.*But,*for*input*purchased*by*roasters*is*charged*a*12%* VAT*on*the*raw*coffee,*equivalent*to*the*interstate*ICSM*(VAT).*This*fact*creates*a*debit*balance* in*business,*since*most*of*the*coffee*has*to*be*imported*from*other*states,*considering*the*higher* demand*in*the*state*RJ*(Governo*do*Estado*do*Rio*de*Janeiro,*2002;*FAERJ,*1999).* Industrial* activity* in* Varre;Sai* restricts* to* the* coffee* processing* by* brands* Patusco,* Vargas* and* Fuerza,* with* low* production* scale.* The* absence* of* industrial* facilities* is* due* to* lack* of* basic* requirements* for* the* attractiveness* of* investments,* namely:* the* distance* from* the* consumer* market* and* the* lack* of* raw* material* for* processing,* and* poor* logistics* infrastructure,* which* aggravates*the*situation*(Ferreira,*2013).** 5.4.2. Degree&of&Competitiveness& It* can* be* said* that* the* coffee* market* in* Varre;Sai* is* entangled* by* a* market* distortion* called* OLIGOPSONY.*Bellù*(2013)*states*that*in*the*case*of*Oligopsony,*there*are*few*buyers,*who*enjoy* positive* extra* profits,* while* sellers* earn* much* less* than* it* would* be* in* perfect* competition.* It* ! 71! means*that*the*producers*don’t*enjoy*the*full*value*of*their*product,*thus*face*problems*to*sell* their*output.*This*situation*stands*in*the*case*of*Varre;Sai.*Market*problems*of*competitiveness* can* be* corrected* through* governmental* measures* (Bellù,* 2013).* The* commented* barriers* and* opportunities*in*the*marketplace*are*in*Figure&36,*as*follow.* * Figure&36:&Marketplace&distortions&and&opportunities&in&the&value&chain&A& One*of*the*opportunities*of*improvement*is*the*activation*of*the*COOPERCANOL.*Currently,*there* are* only* 120* farmers’* members.* The* cooperative* could* encompass* ALL* coffee* producers* within* the*State;RJ.*It*was*designed*to*have*NO*borders.*It*would*be*around*20K*coffee*bags*onset*up*to* 100K* bags* (50%)* of* the* share* produced* in* the* region.* The* cooperative* would* ensure* the* best* price*for*the*producer.*There*will*be*more*appeal,*easing*the*access*to*the*markets.*Additionally,* there* is* the* need* for* a* specific* policy* to* regulate* the* market* and* give* protection* against* overproduction,*which*is*the*main*driver*of*price*depreciation.*The*Brazilian*Coffee*Institute*(IBC)* was* extinct* in* 1990,* and* yet* there* is* the* lack* of* a* specific* a* regulatory* body15.* Additionally,* we* shall*not*forget*that*coffee*growers*are*squeezed*between*the*buyers*and*input*providers,*which,* according* to* this* research,* constitute* few* options,* usually* commercial* shops* in* Varre;Sai* (few* sellers).** !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 15!Data*acquired*from*the*interview*with*José*Ferreira*(Appendix*8)! ! 72! 5.5. Step&5:&Functional&Analysis&Value&Chain&A&(Coffee)& Conforming* to* FAERJ* (1999),* the* Brazilian* coffee* value* chain* is* composed* of* rural* producers,* processing*and*commercialization*agents,*exporters*and*consumers*(Figure&37).* & Figure&37:&Coffee&agroCindustry&value&chain& Elaborated*by*the*author.*Source*of*data*(FAERJ,*1999)* ! 73! 5.5.1. Setting&the&boundaries& The* set* boundary* in* this* research* comprises* the* two* micro;basins* studied* MB1* and* MB2* in* the* city* of* Varre;Sai.* Outside* agents* were* considered* merely* as* an* illustration* of* national* and* external*markets.*In*this*study,*data*was*collect*solely*within*the*set*boundary*of*the*city*Varre; Sai.*Figure*38*illustrates*the*boundaries*agents*involved*and*gives*a*general*representation*of*the* value*chain*A.** * Figure&38:&Value&Chain&A&(Coffee)&flowCchart&& Chart*elaborated*by*the*author*based*on*field*research* The* “blue* boundary”* and* “blue* flow* arrows”* represent* the* movement* inside* the* set* study* boundary*of*Varre;Sai.*The*most*relevant*agents*for*this*research*and*their*flows*within*the*value* chain*are*identified.*Coffee*growers*provide*supply*for*local*roasters,*local*storage*(private*farm* storage),*local*traders*and*a*local*cooperative.*The*cooperative*COOPERCANOL*has*been*recently* reactivated* (not* yet* activated* by* the* time* of* the* research).* The* “green* boundary”* and* “green* arrows”* illustrate* the* connection* with* the* national* market,* including* Rio* de* Janeiro* state* and* other*Brazilian*states.*The*“purple*boundary”*represents*the*external*market.*It*is*observed*that* ! 74! some*farmers*commercialize*through*the*national*market.*However,*there*was*found*no*farmer,* who* commercialize* directly* with* the* external* market.* It* might* be* at* some* point* within* the* complexity*of*coffee*trade,*that*the*product*could*be*somehow*sent*to*external*market*via*the* outside*boundary*of*the*national*market,*but*it*is*just*a*guessing.** What* is* certainly,* and* it* is* represented* by* the* “striped* red* arrows”* in* the* flow* chart,* is* the* potential* for* external* commercialization* by* the* cooperative.* Once* it* starts* to* operate,* it* will* be* able* to* commercialize* directly* with* the* external* market* (potential* consumer* is* China),* and* also* increase* the* local* trade* and* local* consumption* (Appendix& 8).* The* cooperative* offers* a* good* opportunity* for* local* coffee* growers* to* upgrade* their* position* in* the* coffee* value* chain.* This* requires,*though,*a*commitment*of*the*farmers*to*the*integration*in*the*cooperative,*so*that*the* volume*of*coffee*in*the*cooperative*is*capable*of*supplying*the*load*demanded*for*exportation.** Another* potential* is* to* increase* the* local* supply,* by* improving* the* production* technology.* The* local* market* demand* is* already* higher* than* the* current* supply* and* would* certainly* absorb* the* increased*production.* 5.5.2. Identification&of&activities&and&technical&analysis& 5.5.2.1. Current&applied&technology&in&the&North&West&Region&coffee& Many*studies*have*demonstrated*the*development*of*new*technologies*for*increasing*yield*at*the* production* level* and* also* for* improving* the* quality* of* the* final* product,* by* adjusting* adequate* technologies* at* different* levels* of* the* value* chain.* According* to* Andrade* &* Silva* (2013),* the* problematic* of* the* “Fluminense’s”* coffee* lies* on* the* difficult* mechanization* of* the* “Mountain* coffee”* production.* Consequently* the* production* costs* increases,* due* to* scarce* and* expensive* labor*during*the*harvest.*And*also*the*competitiveness*of*other*economic*activities,*such*as*the* oil* industry* developed* within* the* state,* which* inevitably* withdraws* the* rural* youth* willing* to* a* more*attractive*source*of*income.* In* the* specific* case* of* the* mountainous* landscape* of* the* Northwest* Rio* de* Janeiro,* it* has* been* recommended*the*densification*of*coffee*bushes*per*hectare,*more*suitable*for*small*size*farms* (Andrade*et*al.,*2009,*2014,*2002).*In*many*studies,*the*densification*of*coffee*plantations*in*the* Northwest*has*proven*to*be*a*better*option*for*small*family*farmers,*and*very*important*for*the* maintenance* of* local* livelihoods* within* the* rural* region* (Andrade* et* al.,* 2002,* 2009,* 2014).* Experiments*in*Bom*Jesus*do*Itabapoana*(RJ)*showed*the*best*density,*which*is*the*plant*distance* in*the*same*row*of*0.25;0.5m*and*between*each*row*of*2.0m*(Andrade*et*al.,*2009,*2014).*The* ! 75! overall* benefit* of* this* technology* adapted* and* appropriated* for* the* conditions* of* the* region,* as* described*by*Andrade*et*al.*(2009),*is*that*it*presents*higher*productivity*in*shorter*term,*faster* payback*of*initial*investments,*and*general*improvement*of*the*soil*in*slope*areas.*However,*the* farmer* needs* to* be* aware* of* the* increased* harvest* labor* needs,* due* to* lesser* mechanization* in* dense*spaces,*the*increased*care*with*pest*and*plague*control,*and*the*higher*initial*investment* (Andrade*et*al.,*2009,*2014).* 5.5.2.2. PostCharvest&technologies& The*general*post;harvest*coffee*processing*is*simplified*in*Figure&39.* * Figure&39:&Coffee&postCharvest&processing&chart& Figure*created*using*data*compiled*by*the*author* Coffee*Harvest* As*described*by*the*NCA*(2015),*coffee*can*be*harvested*by*two*different*methods:* I. Strip*picked:*coffee*cherries*stripped*of*the*branch*at*one*time*by*hand*or*mechanically* II. Selectively*Picked:*only*ripe*coffee*cherries*harvested*individually*by*hand* According*to*Barbosa*et*al.*(2005),*the*type*of*harvest*plays*an*important*role*in*the*final*overall* cost*of*the*harvested*bag*of*coffee.*His*experiments*revealed*that*semi;mechanical*harvest,*using* portable* mechanical* coffee* harvesters,* performs* superiorly* at* lower* cost* in* comparison* to* the* traditional*manual*coffee*harvest.** The* distribution* of* harvest* technology* among* the* interviewed* farmers* is* represented* in* Figure& 40.*It*is*noted*nearly*half*(56.7%)*of*them*use*a*both*manual*strip*picked,*and*semi;mechanical* strip* picked* (chi;square,* p* =* 0.014).* Only* 13.3%* of* the* farmers* use* the* manual* strip* picked* technology,*due*lack*of*alternatives.*The*type*of*harvest*technology*implies*directly*on*the*labor* ! 76! costs,* considering* that* manual* strip* picked* technology* is* more* time* consuming* and* labor* intensive.* Figure&40:&Harvest&Technology&of&the&coffee&growers& Coffee*Processing* The* way* of* processing* and* the* drying* method* interfere* biochemically,* physically* and* physiologically* on* the* coffee* beans,* thus* affecting* final* aroma* and* flavor* (Rosa* et* al.,* 2013;* Livramento,* 2008).* The* processing* of* the* coffee* cherries* can* be* performed* by* two* different* methods* (Rosa* et* al.,* 2013;* NCA,* 2015;* Livramento,* 2008;* Reinato* et* al.,* 2012;* Castoldi* &* Castoldi,*2013):* I. Dry*method:*also*called*natural*coffee*processing.*The*coffee*cherries*are*kept*intact*with* the*skin*and*the*mucilage.*The*cherries*are*spread*into*sun*drying*yards*till*reaching*up* the*moisture*content*of*11%* II. Wet* method:* removes* the* pulp* from* the* beans* and* the* beans* dry* with* only* the* parchment*skin*left*on.*There*are*several*ways:*coffee*cherries*can*be*peeled,*removing* the* skin* and* part* of* the* parchment;* demucilaged,* pulp* and* husks* are* mechanically* separated* from* the* bean;* or/and* coffee* can* pass* through* a* biological* fermentation,* where*the*pulp*and*mucilage*are*removed*by*water;filled*fermentation*tanks* In* Brazil,* it* is* predominant* the* dry* method* for* the* Arabica* coffee,* which* characterizes* the* Brazilian* coffee* worldwide* known* as* “* Brazilian* natural* coffee”* (Castoldi* &* Castoldi,* 2013).* The* processing* by* natural* conditions,* which* originates* the* distinct* Brazilian* natural* coffees,* is* subjected*to*weather*conditions*such*as*precipitation*during*the*harvest*period*(Baquião*Filho*et* al.,* 2013).* Studies* suggest* (Rosa* et* al.,* 2013;* Baquião* Filho* et* al.,* 2013)* that* the* natural* processing* method* may* undermine* coffee* quality* due* to* undesired* fermentations.* Castoldi* &* Castoldi* (2013)* also* observed* that* the* wet* method* has* presented* better* quality* and* increased* value*of*the*product.* ! 77! In*this*study,*it*is*observed*a*disproportional*post;harvest*technology**(chi;square,*p*<*0.001).*80%* of* the* farmers* practice* the* dry* method.* And* the* minority* practices* the* wet* method* or* both* (Figure&41),*depending*on*the*assets*acquired,*e.g.*pulping*machines.*Assets*were*acquired*with* or* without* governmental* financial* subsidies.* Some* pulping* machines* were* obtained* via* the* Micro;basin* Program* “Rio* Rural”.* * The* main* problem* of* the* wet* method* is* to* deal* with* the* residual*water,*which*poses*an*environmental*problem,*and*offers*a*constraint*of*implementation* upon*the*environmental*rules,*told*Ueber*(SDS;SEAPEC)*in*personal*conversation.* Figure&41:&PostCharvest&Processing&predominance&among&coffee&growers& Coffee*Drying* After* one* or* combination* of* steps,* the* pulped* and* fermented,* the* coffee* beans* are* dried* till* reaching*the*11%*final*moisture*(NCA,*2015).*The*coffee*drying*procedure*can*be*executed*using* two*different*methods:** • Traditional* sun;drying* coffee* yards,* which* can* be* dirt* yards,* concrete* or* asphalt* mud* yards*(Reinato*et*al.,*2012)* • Dryer* machine,* which* can* be* horizontal* or* vertical* cross* flow* large* tumblers* (Silva* &* Cardoso*Sobrinho,*2001;*NCA,*2015)** Oliveira*et*al.*(2001)*have*not*detected*a*significant*difference*in*coffee*quality*in*their*analyzed* samples* submitted* to* different* drying* methods,* such* in* sun;drying* coffee* yards* or* dryer* machines.* However,* they* observed* changes* in* the* quality* with* high* temperature* used* to* dry* (>50°C).*Regarding*the*type*of*dryer*machine,*Silva*&*Cardoso*Sobrinho*(2001)*have*not*detected* any* quality* differentiation* using* different* types* of* coffee* dryers* machines.* However,* they* observed* that* a* combination* of* the* horizontal* with* the* vertical* cross* flow* reduces* the* energy* intake*for*drying*procedures.* The* moisture* content* in* coffee* is* critical* for* final* quality.* No* matter* the* drying* method* used,* coffee*can't*be*stored*at*elevated*moisture*(≈*35%).*At*high*humidity,*it*favors*the*incidence*of* fungus,*such*as*Penicillium)sp.,)Cladosporium)sp.,)Fusarium)sp.*and*Aspergillus)ocraceus,*according* to* Rosa* et* al.* (2013).* One* of* the* major* problems* related* to* the* quality* of* the* coffee,* faced* by* ! 78! Brazilian*coffee*growers,*both*domestically*and*externally,*is*associated*with*the*drying*process* (Afonso*Jr.*et*al.,*2001).** In*this*study,*the*coffee*drying*technology*distribution*was*very*heterogeneous*showing*unequal* proportions*(chi;square,*p*=*0.037),*in*terms*of*method*and*materials*used*in*the*coffee*drying.*It* seems*that*it*is*predominant*the*mixed*coffee*drying,*that*means,*a*previous*drying*in*the*coffee* yard* and* a* further* drying* in* the* dryer* machine.* It* does* not* mean* that* all* these* farmers* have* a* dryer*machine.*The*majority*has*to*pay*for*the*service*(R$*15.00*up*to*30.00*per*hour)*of*using* other*farmer’s*machine*or*farmer’s*association*machine.*Some*machines*were*acquired*through* private* purchasing* or* the* Micro;basin* program* “Rio* Rural”.* Still,* the* dirty* yards* (bare* soil)* predominance*is*high,*26.7%*combined*with*mixed*drying*and*16.7%*dirty;yard*alone*(Figure&42).* & Figure&42:&Drying&technology&predominance&of&the&coffee&growers& 5.5.3. Identification&of&agents&& In*Table&18,*all*relevant*activities*and*agents*in*the*studied*coffee*value*chain*are*listed*for*clarity* of*analysis.* Table&18:&&Functional&analysis&table:&coffee&chain&(A)& Activity& Coffee&production& Agents& ⋅ Manual*strip*picked*coffee*growers* ⋅ Semi;mechanical*strip*picked*coffee*growers* Output& ⋅ Coffee*cherries* ⋅ Self;processed*coffee* SelfCconsumption& ⋅ Varre;Sai*coffee*growers* PostCharvest& ⋅ Wet*method*processing*coffee*growers* ⋅ Pulped*coffee*beans* processing& ⋅ Dry*method*processing*coffee*growers* ⋅ Parchment*coffee* ⋅ Dried*parchment*coffee* ⋅ Dirty;yards*drying*coffee*growers* Coffee&drying& ⋅ Concrete;yards*drying*coffee*growers* ⋅ Parchment*coffee* ⋅ Machine;drying*coffee*growers* ! 79! ⋅ Mixed;drying*coffee*growers* Coffee&milling& ⋅ Milling*coffee*growers* ⋅ Cooperatives* ⋅ Milled*coffee* ⋅ Varre;Sai*coffee*growers* ⋅ Local*Cooperative*(Varre;Sai*or*RJ)* Storage& ⋅ Regional*Cooperative*(MG,*ES)* ⋅ Parchment*coffee** ⋅ Coffee*traders*(intermediaries)* ⋅ Milled*coffee* ⋅ Local*coffee*roasters* ⋅ Coffee*importers*&*exporters** Coffee&roasting& ⋅ Roasting*coffee*growers*(small*business)* ⋅ Roasters*(coffee*industry)* ⋅ Roasted*coffee* ⋅ Roasters*(coffee*industry)* Coffee&grinding& ⋅ Consumer*(e.g.*coffee*shops,*individual*consumer,* ⋅ Ground*roasted*coffee* supermarket,*bakery)* ⋅ “Middlemen”*–*intermediaries*(local*trader)* Trade&(coffee& ⋅ Cooperatives* bean)& ⋅ Roasters* ⋅ Coffee*bean* ⋅ Importers*&*exporters** Trade&(coffee& product)& Coffee&brewing& ⋅ Wholesalers* ⋅ Supermarkets* ⋅ Direct*purchase*from*the*coffee*grower* ⋅ Consumer*(e.g.*coffee*shops,*individual*consumer,* supermarket,*bakery)* ⋅ Roasted*ground*coffee* ⋅ Roasted*beans* ⋅ Drinking*coffee* **Potential*trade/storage.*No*interviewed*farmers*held*direct*connection*to*importer*&*exporter;*most*of*the*supply*is* for*the*domestic*market,*due*to*quantity*and*quality*of*the*coffee*produced* It*is*noted*a*variety*of*agents*and*activities*performed.*The*majority*of*the*activities*are*held*on* the*farm,*including*production,*storage,*post;harvest* processing,* drying,* milling,* and* sometimes* the* processing* roasting* and* grinding.* Two* of* the* three* roasters* interviewed* were* held* on* the* farm*(6.7%*of*the*farmers).*However,*93.3%*(z;score,*p*<*0.001)*of*the*farmers*does*not*process* their*coffee,*and*sell*their*product*for*a*local*roaster,*or*local*trader.* One* of* the* bottlenecks* identified,* apart* from* the* post;harvest* technologies* and* drying* technologies,* are* the* processing* techniques.* Today* in* the* micro;basins* studied,* there* are* few* coffee*milling*machines*available*for*the*farmers.*Almost*all*of*them*have*to*pay*for*the*milling* process*(83.3%,*chi;square,*p*<*0.001,*Figure&43),*which*is*usually*1;1.5*kg*per*coffee*bag*(60kg).* They*are*losing*about*1kg*for*each*coffee*bag.*The*larger*producers*possess*one*milling*machine* and*sell*the*service*of*milling*for*the*smaller*holders.*The*cooperative*COOPERCANOL*is*intended* ! 80! for* this* purpose,* and* will* offer* coffee* milling* for* the* local* affiliated* coffee* growers,* and* should* disentangle*this*problem.* Figure&43:&Milling&distribution&among&the&coffee&growers& The*results*suggest*that,*depending*on*the*stage*of*technology*and*innovation*of*the*farmers,*this* can*place*them*in*a*worse*or*better*position*and*participation*in*the*value*chain.*The*bottlenecks* that* are* undermining* the* development* of* coffee* growers* are* indirectly* related* to* the* type* of* technology* used* which* affects* the* final* quality* of* the* product* and* consequently* diminishes* the* payback* of* investments* and* costs.* This* issue* needs* more* governmental* attention;* in* terms* of,* which* technologies* are* to* be* incentivized* and* which* of* them* would* have* more* impact* on* the* rural* development.* According* to* the* literature* reviewed,* the* post;harvest* method* is* the* most* important*factor*concerning*the*final*coffee*quality,*which*certainly*could*be*one*of*the*facets*of* development*target,*since*the*production*is*small.*Policies*should*be*driven*towards*the*niche*of* high*quality*and*specialized*coffees,*indented*to*the*city*of*Rio*de*Janeiro.* 5.5.4. Quantification&of&physical&flows& The* total* quantification* of* physical* flows* in* terms* of* quantity* supplied* and* quantities* utilized* within*the*studied*coffee*chain*is*represented*as*supply*utilization*account*(SUA)*in*Table&19.*The* results* account* the* data* collected* from* the* interviewed* chain* agents,* in* this* case,* farmers,* processors,*and*traders.** Table&19:&Supply&Utilization&Account&(SUA)&coffee& Biannual&supply&items& Utilization&items&(annual)& Coffee&production&ofµ&basins&"Onça"&and&"VarreCSai"& 820.83& Roasters& 915.4& Farmer's&storage& 396.48& Own&consumption& & Traded& Total&(tons)& ! 1217.31& 0.61696& 660& 1576.02& C358.71& 81! The*supply*of*coffee*is*available*in*a*biannual*cycle.*One*year*farmers*supply*more*and*one*year* supply*less,*due*to*the*inherent*characteristic*of*the*coffee*crop.*It*was*accounted*in*this*research* a*total*of*1217.31*tons*of*coffee*in*the*micro;basins*MB1*and*MB2,*considering*amount*produced* during*the*last*biannual*cycle*plus*the*quantity*in*storage*by*the*30*farmers.*The*amount*of*coffee* utilized*was*though*higher*than*the*amount*produced*(1576.02*tons).*It*is*noted*that*there*is*a* deficit* of* 358.71* tons* of* coffee.* It* means* that* the* local* production* is* not* supplying* the* local* demand,*e.g.*local*roasters,*own*consumption*on*farm*and*trading.*Even*considering*the*biannual* production*the*demand*is*yet*higher*than*the*amount*supplied.* Due* to* the* scope* of* this* research,* the* supply* items* accounted* the* total* supply* of* 30* farmers* interviewed.* The* utilization* items* accounted* data* collected* from* all* the* three* available* local* coffee* roasters* (processors)* and* two* traders* within* the* municipality* of* Varre;Sai.* The* own* consumption* considers* the* on;farm* consumption.* Figure& 44* illustrates* the* physical* flow* of* the* interviewed*chain*agents*in*the*value*chain*A.* Figure&44:&Quantification&of&physical&flows&in&the&Value&chain&A&(coffee)& Flow*chart*elaborated*by*the*author*based*on*the*field*research* Nevertheless,* in* the* supply* utilization* account,* the* numbers* should* be* even,* the* quantity* supplied*equals*the*quantity*utilized.*The*deficit*can*be*explained*by*some*factors.*This*particular* chain* is* an* open* system;* the* quantity* supplied* not* necessary* is* intended* only* for* the* local* demand.*Also,*the*utilized*items*could*have*their*raw*material*source*out*of*the*system,*meaning* that,*the*roasters*acquired*the*coffee*from*other*cities*or*other*Brazilian*states.*The*interference* of*the*openness*of*the*coffee*chain*might*be*permeating*the*results.*Or,*there*were*not*sufficient* data* for* a* more* accurate* SUA.* A* complete* result* could* be* acquired* if* all* “out* of* chain”* agents* ! 82! were* interviewed.* It* means* actors* from* other* states* and* other* cities.* However* due* to* the* resources*available*and*the*intention*of*research,*the*accounts*comprises*only*Varre;Sai*and*the* selected*micro;basins.* 5.5.5. InputCoutput&matrices& Based*on*the*activities,*agents,*and*physical*flows,*it*was*designed*input;output*matrices,*which*is* a* synoptic* representation* of* the* flow* of* physical* quantities* by* each* agent.* In* this* analysis,* data* was* “scaled* up”,* considering* the* average* of* the* yield* of* production* per* hectare* account* of* all* producers,* and* the* average* of* the* production* factors* used* as* input.* These* factors* are* listed* in* Table&20.* Table&20:&InputCoutput&quantities&need&to&produce&1&ha&of&coffee&in&the&studied&area& Activity:&growing&1&ha&of&coffee&(in&the&study&area)& Unit& & Average&quantity&per&ha& Fertilizer& Bags*(50kg)* 21.9* Specialized&fertilizer*& Pulverization* 1.0* Herbicide& Gallon*(20L)* 0.5* Pesticide*& Pulverization* 0.8* Seedlings& Thousands* 4.4* Limestone& Tonnes* 1.2* Fuel*& Liters* 42.4* Packing& Units* 33.8* Labor& Men/day* 3.7* Bags&of&coffee&(60kg)& Bags* 26.43* Coffee&in&tonnes& Tonnes* 1.5856* & Input&quantities&per&ha* Output&quantity&per&ha& *Note:* Fuel* includes* gasoline* or* diesel,* oil* and* natural* gas* in* gasoline* equivalents.* Input* categories* of* specialized* fertilizer* and* pesticides* group* many* different* sorts* of* products,* sometimes* purchased* as* litre* or* kilogram,* however,* applied* as* pulverization.* Since* each* farmer* had* given* different* information,* this* group* was* made* as* a* way* of* comparison.** The*results*of*the*analysis*show*the*technical*quantification*of*physical*flow*grouped*by*a*farmer* representative*of*each*community*investigated,*and* by* micro;basins.*The*input;output* matrices* illustrate* the* account* performed* based* on* the* input;output* average* table* listed* above* for* each* representative*of*community*and*micro;basin,*as*follow*(Figure&45):* ! 83! ! ! ! ! ! Figure&45:&InputCoutput&matrices&of&a&representative&producer&of&studied&community&andµCbasin&& Matrices*elaborated*by*the*author*based*on*the*fieldwork*and*the*methodology*(Bellù,*2013)* ! 84! 5.5.6. Findings&of&the&Functional&analysis& In* Brazil,* coffee* is* a* commodity* value* chain,* usually* intended* for* exportation,* in* which* roasters* supply* only* the* national* market,* and* the* green* coffee* beans* are* commercialized* through* the* external*market.*This*functional*analysis*revealed*that*the*production*in*Varre;Sai,*particularly*in* the* two* micro;basins* studies* is* different,* because* it* focuses* on* the* local* and* regional* consumption.*The*reasons*for*that*might*be*linked*to*the*low*production*yield*and*also*the*low* quality*of*the*final*product,*in*which*Rio*de*Janeiro*gained*over*the*years*a*bad*status.*There*is*a* potential*for*increasing*the*options*and*quality*of*commercialization*if:** 2. The* cooperative* COOPERCANOL* enters* in* operation:* would* expand* the* market* locally* and* externally*as*well,*and*offer*benefits*to*the*farmers*e.g.*milling*process;* 3. The* technological* pattern* in* the* region* is* enhanced:* many* farmers* face* problems* with* harvesting,* post;harvesting,* drying* and* milling* technology.* The* low* pattern* type* of* harvest* allied*to*a*low*pattern*type*of*post;harvest*technologies*contributes*to*the*overall*low*quality* of*the*final*product,*despite*being*much*more*costly*for*the*farmer;* 4. The*farmers*held*at*least*a*minimum*technological*threshold*to*start*up:*coffee*growers*have* to* pay* for* the* services* of* sharing* drying* machines,* milling* machines.* It* is* required* a* more* men/month*production*factor*than*usual*since*the*harvest*is*manual*and*semi;mechanical.*If* more*assets*could*be*available*to*them,*they*could*have*the*minimum*to*start*the*value*chain* upgrading*process;* 5. The* focus* is* addressed* on* quality* and* on* how* to* put* the* farmer* in* a* better* position* in* the* value*chain:*not*only*increasing*the*local*production,*but*also*occupy*a*place*at*better*niches* of* markets,* for* instance* special* coffees,* that* independently* of* the* quantity* produced,* give* better*payback*of*investments.* 5.6. Step&6:&Economic&analysis&of&value&chain&A& 5.6.1. Production&Account& 5.6.1.1. Total&Output&Value&& For*the*total*output*value,*there*are*four*assumptions*used*in*this*study:* (A)*Sales*Revenue:*It*was*considered*the*total*output*value*sold*in*the*period*of*a*biannual*cycle.* It*accounted*the*value*of*output*produced*in*the*1st*cropping*year*times*the*price*paid*in*the*1st* ! 85! cropping*year*(2012),*plus*the*value*of*output*produced*in*the*2nd*cropping*year*times*the*price* paid*in*the*2nd*cropping*year*(2013).** (B)* Own* final* consumption:* Calculation* was* performed* using* the* household* size* times* the* Brazilian* standard* annual* consumption* of* 6.12* kg* of* green* coffee* per* capita* year;1* (ABIC,* 2015)* times* the* average* price* per* kilogram,* at* which* it* could* have* been* sold* on* the* market* for* the* period*2012;2013.** (C)*Change*in*the*inventories:**It*was*considered*the*value*of*the*coffee*in*storage*for*future*sale* as*a*net*of*the*stock*at*the*end*and*the*stock*at*the*beginning*period.*As*the*research*combines* the*biannual*cycle*of*2012;2013,*there*is*no*data*regarding*the*stock*at*the*beginning.*Therefore,* the*change*in*the*inventories*considered*just*the*actual*stock*of*coffee*in*storage*held*by*farmers* as*the*stock*at*the*end*of*the*period.** (D)*Total*output*value:*A*+*B*+*C:*Results*were*clustered*into*communities*and*micro;basins,*for* the* effect* of* comparison.* Therefore,* the* account* used* the* primary* data* of* each* farmer* as* a* source* of* average* calculations* of* clustered* results.* For* upstream* it* was* used* the* average* correspondent.*Upstream*agents*of*the*chain*were*accounted*separately.* Total*output*value*results*are*in*Table& 21.*They*exemplify*the*average*“total*output*value”*by*a* representative* farmer* of* each* community* and* each* micro;basin.* Results* show* that* the* community*Santa*Cruz*I,*representing*the*MB2*has*a*greater*total*output*value*in*comparison*to* the*MB1.*In*MB1,*farmers*of*Degredo*have*a*greater*value*of*output*in*relation*to*farmers*of*Boa* Ventura.** Table&21:&Total&Output&Value&of&Value&Chain&A&–&Producers& & A& B& C& D=A+B+C& & Sales* Revenues* Own*Final* Consumption* Change*in* Inventories* Total*Output* Value* Santa&Cruz&I& Degredo& Boa&Ventura& MB1& MB2& *R$253,666.73** *R$94,110.00** *R$38,287.44** *R$66,198.72** *R$253,666.73** *R$196.12** *R$235.77** *R$188.18** *R$211.98** *R$196.12** *R$182,421.27** *R$95,285.71** R$14,439.42** *R$54,862.57** R$182,421.27** R$436,284.12** R$189,631.48** R$52,915.05** R$121,273.26** R$436,284.12** The* upstream* account* is* represented* in* Table& 22.* For* the* account,* it* was* considered* the* total* sales*revenue,*as*the*processed*quantity*times*the*price*of*trade*of*the*final*product,*estimating* the*average*of*all*upstream*agents*in*the*period*of*the*biannual*cycle.*The*own*consumption,*in* this*case,*was*considered*the*quantity*lost*during*the*process*if*any.*The*change*in*the*inventories* was*calculated*using*the*amount*bought*minus*quantity*used*in*production*or*traded*and*coffee* ! 86! in*storage.*It*is*observed*that*the*total*output*value*has*an*ascending*increase*from*downstream* to*upstream*value*chain*actors.* Table&22:&Total&Output&Value&of&Value&Chain&A&–&Upstream&agents& & & A& Sales*Revenues* B& Own*Final*Consumption* *R$114,872.22** ;* C& Change*in*Inventories* *R$164,488.89** *R$277,500.00** D=A+B+C& Total*Output*Value* *R$5,249,694.44** *R$2,782,500.00** 5.6.1.2. Roasters& Brokers& *R$4,970,333.33** R$2,505,000.00** Gross&Value&Added&(GVA)&& For*reason*of*analysis,*it*has*been*considered*the*two*assumptions:* (E)*Intermediate*input*costs:*accounted*the*total*goods*entering*the*production*process,*entirely* consumed* during* the* production* period.* Considering:* Intermediate* Inputs* Produced* Inside* the* Value* chain* (IIIC)* as* outputs* of* downstream* agents,* e.g.* coffee* for* the* upstream* agents;* and* Intermediate* Inputs* Outside* the* Value* Chain* (IIOC)* as* inputs,* such* as* fertilizers,* pesticides,* etc.* The*last*one*is*mostly*common*among*the*producer*agent.*The* farmers* IIOC* are* in*Table& 23,* it* was* used* the* analysis* of* input;output* matrices* to* base* the* quantity* of* input,* and* the* average* price*paid*by*each*farmer*for*each*input.* Table&23:&Intermediate&Inputs&Outside&the&Value&Chain&(IIOC)&by&farmers& Input& Fertilizer& Unit& Bag* (50kg)* Qt./& ha& Price/unit& Boa&Ventura& Degredo& Santa&Cruz&I& (=&MB2)& MB1& 21.9* R$58.00* R$7,620.04* R$8,763.05* R$15,875.08* R$8,013.74* Specialized&fertilizer& Spraying* 1.0* R$213.00* R$1,235.40* R$1,420.71* R$2,573.75* R$1,299.23* Herbicide& Gallon*(20L)* 0.5* R$203.00* R$592.76* R$681.67* R$1,234.92* R$623.39* Pesticide& Spraying* 0.8* R$304.00* R$1,459.20* R$1,678.08* R$3,040.00* R$1,534.59* Seedlings& K* 4.4* R$213.30* R$5,579.93* R$6,416.92* R$11,624.85* R$5,868.22* Limestone& Ton* 1.2* R$110.00* R$773.96* R$890.05* R$1,612.42* R$813.95* Fuel& Liter* 42.4* R$3.15* R$801.36* R$921.56* R$1,669.50* R$842.76* Packing& Unit* 33.8* R$1.50* R$304.38* R$350.04* R$634.13* R$320.11* Total&IIOC& R$18,367.03* R$21,122.08* R$38,264.64* R$19,315.99* * * Average*ha** 6* 6.9* 12.5* 6.31* & (Representative*producer)* Note:*Quantity*input*used*per*hectare*and*price*per*unit*are*in*average*the*price*given*by*farmers*in*the*interview.*The* hectares* of* a* representative* farmer* of* the* community* and* MB* were* obtained* through* the* input;output* matrices* analysis.* ! * 87! (F)*Gross*Value*Added*(GVA):*F=D;E.*The*GVA*calculated*represents*the*value*of*output*net*of*the* value*of*the*intermediate*input*costs.*The*results*were*clustered*in*community*and*micro;basins,* for* the* effect* of* comparison.* Upstream* agents* of* the* chain* were* accounted* separately.* It* is* important* to* remember* that* the* IIIC,* IIOC,* and* GVA* represent* the* average* of* a* representative* agent,*community*or*micro;basin.*The*GVA*results*are*expressed*in*Table&24.* Table&24:&Gross&Value&Added&in&Value&Chain&A&Coffee& & IIIC& IIOC& (E=&IIIC+IIOC)& Intermediate& Input&costs& (D)&Total&Output& Value& (F=DCE)&& Gross&value& Added& Santa&Cruz&I& ;* *R$38,264.64** *R$38,264.64** *R$436,284.12** *R$398,019.48** Degredo& ;* *R$21,122.08** *R$21,122.08** *R$189,631.48** *R$168,509.40** Boa&Ventura& ;* *R$18,367.03** *R$18,367.03** *R$52,915.05** *R$34,548.02** MB1& ;* *R$19,315.99** *R$19,315.99** *R$121,273.26** *R$101,957.27** MB2& ;* *R$38,264.64** *R$38,264.64** *R$436,284.12** *R$398,019.48** Roasters& *R$1,327,511.11** *R$2,893,000.00** *R$4,220,511.11** *R$5,249,694.44** *R$1,029,183.33** Brokers& *R$2,470,000.00** *R$2,782,500.00** *R$288,000.00** *R$24,500.00** *R$2,494,500.00** Note:*IIOC*considered*inputs*for*farmers,*transportation*costs*for*brokers,*processing*cost*for*roasters;*IIIC*considered* the*raw*material*coffee*for*upstream*agents,*the*same*as*the*output*of*downstream*agents*(inside*the*value*chain).* It* is* noted* an* ascending* creation* of* gross* value* added* (GVA)* at* the* intermediate* input* costs,* which*is*lower*in*downstream*agents*and*higher*in*upstream*agents.*This*result*implies*that*there* is*value*added*creation*along*the*value*chain.** There*were*some*obstacles*for*this*analysis.*One*of*the*obstacles*was*the*insufficient*information* provided* by* upstream* agents.* Roasters* and* the* middlemen* didn’t* want* to* expose* themselves,* thus*didn’t*provide*clear*data*due*to*mistrust.*Data*was*approximately*stipulated*in*the*account.* The*other*obstacle*was*regarding*the*producers.*It*was*not*entirely*clear*the*separation*of*costs* among*property*owners*and*sharecroppers.*Some*sharecroppers*enjoy*the*use*of*property*assets* and*inputs,*which*they*didn’t*contribute*in*terms*of*cost.** Furthermore,* the* inputs* for* each* producer* weren’t* quite* homogenous;* some* of* them* used* pulverization,* some* pesticides* in* kilograms,* etc.* In* order* to* calculate* and* compare* data,* the* account*considered*the*following*aspects:*Fuel*included*gasoline,*natural*gas,*and*oil,*for*running* machinery* and* vehicles;* Categories* of* inputs* were* grouped* according* to* characteristics* and* function,* e.g.* fertilizers,* pesticides,* etc.,* considering* that* each* farmer* has* an* own* method,* different*purchase*prices,*different*product*types,*and*so*forth.*The*calculation*was*made*using* ! 88! the*technical*quantity*per*hectare*acquired*in*the*previous*analysis*input;output*matrices*as*an* average*of*a*representative*producer*of*each*community*and*each*micro;basin.* 5.6.1.3. Net&Value&Added&(NVA)& The*account*of*Net*Value*Added*considered*two*assumptions:* (G)* Consumption* of* fixed* capital* –* Cf:* It* was* calculated* the* consumption* of* fixed* assets,* e.g.* machinery,* equipment,* vehicles.* Cf* was* calculated* using* the* formula* Cf=) CIINT,* together* with* income*account*over*the*next*topic16.*The*calculations*of*the*Cf*followed*the*considered*aspects:* The*value*of*all*encountered*assets*(V)*of*each*agent*individually*divided*by*the*time*of*constant* efficiency* (n).* It* was* used* the* standard* lifespan* of* fixed* assets* according* to* the* Normative* Instruction* SFR* N°162* by* the* “Receita* Federal* do* Brasil”* (Ministério* da* Fazenda,* 2015,* 1998).* Then,*it*was*accounted*the*average*of*the*total*value*of*Cf*summing*all*producers,*and*stipulated* the*average*for*a*representative*producer*of*each*community*and*micro;basin.*However,*it*was* observed* that* some* farmers* have* a* lot* of* assets* while* some* farmers* have* none.* Some* assets* were* obtained* via* the* project* of* Micro;basin* Rio* Rural.* Although* the* investment* was* not* upon* the* farmer,* there* is* the* consumption* of* that* fixed* asset,* and* thus* was* calculated.* The* same* calculation*proceeded*for*other*agents.* (H)*Net*Value*Added*(NVA):*calculations*were*made*according*to*H=F;G,*expressing*the*value*of* output* net* of* the* value* of* both* intermediate* inputs* minus* the* consumption* of* fixed* asset.* The* results*of*NVA*can*be*seen*in*Table&25.* Table&25:&Net&Value&Added&NVA&in&Value&Chain&A& & (G)&Consumption&of&fixed& asset&(Cf)& (F)&Gross&Value&Added&–& GVA& (H=FCG)&Net&value&Added&–& NVA& Boa&Ventura& *R$3,091.07** *R$34,548.02** *R$31,456.95** Degredo& *R$3,705.00** *R$168,509.40** *R$164,804.40** Average&MB1& *R$3,317.25** *R$101,957.27** *R$98,640.02** Santa&Cruz&I&&(=MB2)& *R$17,137.27** *R$398,019.48** *R$380,882.20** Brokers& *R$64,722.00** *R$1,029,183.33** *R$964,461.33** Roasters& *R$19,599.00** *R$288,000.00** *R$268,401.00** * !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 16 *Formulas*and*calculations*of*Cf,)C*and*INT*are*detailed*in*the*Methodology*chapter* ! 89! 5.6.1.4. Findings&of&Production&Account& The* results* obtained* reveal* that* there* is* certainly* an* ascending* net* value* added* (NVA)* creation* along*the*value*chain,*after*discounting*intermediate*inputs*and*consumption*of*fixed*capital.*The* value*added*creation*follows*a*normal*and*natural*pattern*flow*(producer*<*broker*<*roaster),*in* which*MB2*>*MB1.*It*is*noteworthy*that*MB2*(representing*the*community*of*Santa*Cruz*I)*enjoys* a* greater* GVA* and* greater* NVA* in* comparison* to* the* MB1.* In* other* words,* Santa* Cruz* I* community*(=MB2)*has*a*higher*output*in*terms*of*value,*also*has*higher*proprietorship*of*assets,* thus*higher*consumption*of*fixed*capital.*In*MB1,*all*communities*have*the*same*type*of*assets,* similar* consumption* of* fixed* capital.* However,* a* farmer* in* Degredo* has* a* comparative* higher* value*of*output*in*comparison*to*a*farmer*in*Boa*Ventura.*Thus,*there*is*an*overall*higher*value* added* in* Degredo* and* lower* value* added* in* Boa* Ventura,* comparatively.* The* value* added* flow* chart*in*Figure&46*demonstrates*the*net*value*added*share*among*the*value*chain*agents.* * Figure&46:&Net&Value&Added&(NVA)&share&among&value&chain&A&agents& 5.6.2. Income&Account& 5.6.2.1. Wages&and&operational&services&cost& Wages* included* hired* employee,* informal* and* temporary* employee,* and* family* farm* labor* estimated*at*opportunity*costs.*For*the*opportunity*cost,*it*was*considered*the*quantity*farmers* would* pay* for* a* daily* ordinary* worker* if* farmers* do* not* carry* out* the* work.* It* was* assumed* a* minimum* wage* of* R$* 724.00* in* 2014,* with* additional* labor* and* social* fees* for* rural* employee,* according*to*Regulation*Law*No.*5.889/73,*Decree*No.*73.626/74*(Brasil*;*Casa*Civil,*1973,*1974;* Hentcheke,*2012).*It*was*also*assumed*working*days*in*the*harvest*period*of*65*days,*and*daily* payment* men/day* provided* by* the* farmers* with* different* daily* wages.* Sharecroppers* were* accounted*in*bags*of*coffee*times*the*price*paid*per*bag*or*as*family*work.*When*their*production* ! 90! share*has*been*already*deducted*from*the*total*output*value,*sharecroppers*weren’t*considered* as*a*wage.*The*reference*price*used*per*coffee*bag*was*at*R$*227.00*in*average.*This*price*was* useful* in* case* of* in;kind* contributions* for* services* and* payments* in* operational* cost,* when* the* cost*was*not*accounted*for*men/day,*in*case*of*services*or*operational*cost.*The*results*of*wages* in*the*communities*and*micro;basins*are*displayed*in*Table&26.*Results*of*operational*cost*are*in* Table&27.* Table&26:&Remuneration&of&wage&in&Value&Chain&A,&expressed&in&Reais&(R$)& & Family& work& Hired& employee& Temporary& employee& Social&and& Labour& charges& 13°&Wage& Vacation& extra&& Temporary& worker& fees& Total& Boa& Ventura& 31,329.17* 724.00* 2,914.17* 5,128.51* 2,660.41* 877.94* 358.44* 43,992.63* Degredo& 46,667.86* ;* 4,252.86* 7,466.86* 3,873.43* 1,278.23* 523.10* 64,062.34* Santa&Cruz&I& 37,287.91* 6,351.27* 4,845.45* 6,982.27* 3,622.05* 1,195.28* 595.99* 60,880.23* MB1& 36,980.26* 457.26* 3,407.37* 5,990.00* 3,107.31* 1,025.41* 419.11* 51,386.73* MB2& 37,287.91* 6,351.27* 4,845.45* 6,982.27* 3,622.05* 1,195.28* 595.99* 60,880.23* Table&27:&Operational&services&cost&in&Vale&Chain&A,&expressed&in&Reais&(R$)& & Coffee&Drying& Coffee&milling& Coffee&yard&preparation& vehicle&rent& coffee&washing& Total& Boa&Ventura& 195.44* 336.56* 338.75* 188.64* 31.00* 1,090.39* Degredo& 8.57* 910.70* 949.11* 107.14* 142.86* 2,118.38* Santa&Cruz&I& 634.09* 205.33* 96.36* ;* 138.09* 1,073.88* MB1& 126.60* 548.09* 563.62* 156.94* 77.06* 1,472.31* MB2& 634.09* 205.33* 96.36* ;* 138.09* 1,073.88* It* can* be* noted* that* the* production* factor* wage,* when* including* the* family* farm* labor,* contributes* to* a* huge* value* imposed* to* the* overall* production* cost.* In* MB1* (Degredo* and* Boa* Ventura),*it*prevails*the*family*labor*and*some*temporary*work*during*the*harvest*period.*In*MB2,* there*are*costs*related*to*hired*employees*and*temporary*employment*during*the*harvest*period.* The* overall* average* cost* in* wage* was* almost* similar* in* between* community* and* MB.* Regarding* operational*services,*the*costs*were*attributed*to*coffee*drying,*coffee*milling*and*tractor*for*yard* preparation,* since* farmers* don’t* have* these* assets;* they* need* to* pay* for* extra* service* of* the* operation.*This*fact*is*an*issue*of*relevance*to*the*decision;making*process.*When*it*is*possible*to* decide* technologies* to* alleviate* the* extra* operation* costs* and* then* give* the* opportunity* for* farmers*to*save*money*for*future*investments,*and*then*upgrade*in*the*value*chain.* ! 91! 5.6.2.2. Interests&of&fixed&assets&& It*was*used*the*standard*depreciation*of*fixed*assets*as*n*according*to*the*Normative*Instruction* SFR* N°162* by* the* “Receita* Federal* do* Brasil”* (Ministério* da* Fazenda,* 2015,* 1998).* The* rate* of* interest*was*r*=*13.31%,*according*to*the*calculations*in*the*methodology*chapter.*It*was*used*the* knowing* Purchase* price* Po* to* calculate* C,) INT* and* Cf) (Cf=CIINT).* Considering* that* C* is* the* “consumption* of* fixed* assets* at* an* interest* rate* of* the* opportunity* cost* of* capital”* used* in* the* investment,*C*was*calculated*just*to*separate*INT*from*Cf.*For*the*income*account*is*used*just*INT* as* “interest* of* fixed* assets”,* since* Cf) was* already* accounted* in* the* Production* Account* part.* Calculations*of*the*used*depreciation*rate*according*to*type*of*asset*are*displayed*in&Table&28.** Table&28:&Interest&rate&calculation& r" n" Depreciation&rate&for&C& Depreciation&rate&for&INT& Buildings& & 0.1337* 25* 0.123* 0.083* Machineries&and&equipment& 0.1337* 10* 0.165* 0.065* Vehicles& 0.1337* 5* 0.253* 0.053* Tractor& 0.1337* 4* 0.299* 0.049* The* INT* of* each* asset* was* obtained,* using* the* above;calculated* interest* rates.* The* results* were* grouped*by*category*of*asset,*by*community*and*by*micro;basin,*as*seen*in*Table& 29.*Upstream* agents* were* separately* calculated.* It* is* significant* to* consider* that* despite* the* consumption* of* fixed* asset* at* an* interest* rate,* the* assets* often* break* or* need* maintenance,* renovation* or* purchase* of* new* parts* of* the* assets.* The* sum* of* all* maintenance* cost* attribute* to* those* assets* grouped*by*community*and*micro;basin*are*also*in*Table&29.* Table&29:&Annual&Interested&cost&(INT)&producers&Value&Chain&A& & Building& Boa&Ventura& R$711.17* Degredo& Santa&Cruz&I& (=MB2)& MB1& Machinery&and& Maintenance& Vehicle& Tractor& Total&INT& R$635.81* R$44.21* R$313.32* R$1,704.51* R$814.38* R$1,427.72* R$383.77* R$75.79* R$418.53* R$2,305.81* R$1,072.32* R$3,761.39* R$4,042.00* R$245.97* R$1,598.03* R$9,647.39* R$1,789.32* R$975.16* R$542.95* equipment& R$55.84* R$352.08* R$1,926.04* cost&/year& R$909.41* * ! 92! 5.6.2.3. Rents& Rents*expressed*as*the*use*of*natural*resources*such*as*land,*water,*and*soil,*were*not*provided* by* the* farmers.* Farmers* claimed* that* they* had* no* cost* of* water.* They* said* coffee* is* a* rain;fed* crop.*Additionally,*since*they*subtract*water*from*the*springs,*this*cost*is*not*imposed*on*them,* even*in*case*of*drought*when*it*is*needed*to*irrigate*manually.*Also,*they*do*not*lease*land*for* production.* Or* the* property* is* owned,* or* the* land* is* granted* as* a* form* of* partnership* between* sharecroppers*and*property*owners.*These*conditions*are*thus*not*considered*as*a*rental*cost.*So* this* item* was* not* included* in* the* calculations* of* Income* Account.* Rentals* referred* to* payments* for*the*use*of*a*fixed*asset*were*considered*as*operational*cost*services.* 5.6.2.4. Taxes&related&to&the&production& The* Statutory* Law* N°* 41777,* from* 29* September* 2003* (Governo* do* Estado* do* Rio* de* Janeiro,* 2003),*provides*tax*benefits*grants*for*family*farming*in*the*State*of*Rio*de*Janeiro.*In*this*law,*it* is* attributed* reduced* taxes* of* VAT* (ICMS)* of* circulation* of* goods* and* services* in* the* State;RJ,* charging* 6%* of* the* value* of* transaction* of* the* purchase* of* agricultural* goods* produced* in* the* State* Rio* de* Janeiro.* It* is* conceded* benefit* grants* for* the* purchase* of* seeds,* services* of* rural* extension*provided*by*an*official*or*private*institution,*and*also*gives*incentives*for*the*creation* of*cooperatives*acting*in*the*commercialization*and*distribution*of*goods.** The*VAT*of*6%*was*accounted*for*all*production*sales*revenue.*For*the*effect*of*analysis,*it*was* considered* the* VAT* for* all* producers.* However,* the* majority* of* farmers* said* not* having* taxes* relating*to*production.*They*don’t*practice*transactions*using*invoice*notes,*and*the*transaction*is* made*mostly*informally.*Taxes*over*the*inputs*were*already*accounted*in*intermediate*costs.*As* the*demand*is*all*in*the*national*market,*no*transaction*tax*was*attributed*to*export.*For*roasters* and*brokers,*it*was*considered*the*provided*value*during*the*interview.*The*results*are*displayed* in*Table&30.* Table&30:&Taxes&in&Value&Chain&A& Community& VAT&6%& MB& VAT&6%& Upstream&agents& Taxes&(VAT&and&other&charges)& Santa&Cruz&I& R$15,220.00* MB2* R$15,220.00* Roasters* * R$171,800.00* * Degredo& R$5,646.60* Boa&Ventura& MB1* R$3,971.92* Brokers* R$2,297.25* R$150,300.00* * ! 93! 5.6.2.5. Profits&or&Losses& The*Income*account*of*the*agents*of*the*value*chain*A,*expressed*by*Profit*or*Loss*followed*the* equation*Profit)=)NVA)–)production)factors*(Wage,*Interests,*Taxes,*etc.).*Results*are*in*Table&31.* Wages* for* upstream* agents* were* accounted* separately.* Interviewees* representing* these* agents* didn’t*provide*detailed*information*regarding*the*constituents*of*the*production*factors,*but*the* total* expenses* regarding* the* production* factor.* The* not* yet* accounted* production* factors* are* nowhere* displayed.* Farmers* gave* much* more* detailed* information* than* the* upstream* agents.* However,*since*the*group*target*is*the*producer*agent,*the*overall*expenses*of*upstream*agents* were* enough* to* establish* the* comparison* and* analysis* of* the* value* chain* following* the* presupposed*target*group*of*interest.* Table&31:&Income&Account&of&Value&Chain&A& NVA& Wages&&&Op.& Services& Interests&&& maintenance& Taxes& Profit&or&Loss& Boa&Ventura& R$31,456.95* R$45,083.03* R$2,518.88* R$2,297.25* ;R$18,442.21* Degredo& R$164,804.40* R$66,180.72* R$3,378.13* R$5,646.60* R$89,598.94* MB1& R$98,640.02* R$52,859.04* R$2,835.45* R$3,971.92* R$38,973.60* Santa&Cruz&I&(=MB2)& R$380,882.20* R$61,954.10* R$11,436.71* R$15,220.00* R$292,271.39* Roaster& R$964,461.33* R$505,750.00* R$88,321.58* R$171,800.00* R$198,589.76* Broker& R$268,401.00* R$13,800.00* R$5,198.88* R$150,300.00* & R$99,102.12* *The* results* of* the* Income* Account* reveal* that* in* terms* of* micro;basin,* both* MBs* obtained* positive* balance* after* discounting* all* costs* (fixed* and* variables)* from* the* total* value* output.* However,* the* distribution* of* value* added* is* unequal* when* comparing* micro;basins.* MB2* has* a* greater*overall*value*added*creation*and*value;added*distribution*than*in*MB1.*It*is*noteworthy* that*in*terms*of*community,*all*three*communities*presented*very*disparate*results.*While*Santa* Cruz* I* enjoys* some* accumulation* of* wealth,* and* fair* distribution* of* the* value* added,* in* Boa* Ventura,* the* balance* was* negative.* This* means* that* the* community* of* Boa* Ventura* is* the* most* vulnerable*group*of*the*Value*Chain.*Boa*Ventura*does*not*have*a*safe*net*value*added*creation* to*have*a*fair*distribution*of*value*added*within*production*factors.*Also,*although*the*community* of* Degredo,* closed* with* a* positive* balance,* it* is* yet* remarkably* the* inequality* of* value* added* distribution*among*the*communities.** Of*course*the*results*are*related*to*one*representative*farmer*of*the*community.*Some*farmers*of* the*same*community*might*experience*better*self;positioning*in*the*value*chain,*grabbing*enough* value* added* to* cover* the* production* factors.* However,* some* farmers* are* struggling* to* develop* ! 94! their*economic*activity,*and*thus*to*afford*their*livelihoods.*When,*considering*the*distribution*of* value*added*in*upstream*agents,*it*could*be*noted*that*the*value*added*tends*to*concentrate*in* the*upstream*part*of*the*value*chain.*Producers*of*MB1*are*at*a*disadvantage*in*comparison*to* the*upstream*part.*MB2*are*in*greater*position,*even*comparing*the*upper*part*of*the*value*chain.* 5.6.2.6. Findings&of&Income&Account& The*income*account*revealed*the*distribution*of*value*added*along*the*value*chain.*This*issue*is* worth* of* consideration* for* decision;makers,* in* order* to* equalize* the* disparate* distribution* of* wealth,*and*providing*more*or*fewer*benefits*or*grants*depending*on*the*community*needs.*The* institutional* support* has* to* look* not* only* to* the* quantity* of* benefited* micro;basins* or/and* communities,*but*also*the*amount*distributed*for*each*and*its*impact*on*diminishing*imbalances* such*as*seen*in*Boa*Ventura.*It*can*be*said*that*Santa*Cruz*I*is*already*well*positioned*in*the*value* chain.*With*government*interference,*producers*of*the*MB1*could*achieve*the*same*distribution* of* value* added* and* improve* the* concentration* of* wealth.* Figure& 47* illustrates* the* value* added* distribution*share*among*value*chain*agents.* 42%& 28%& 14%& 13%& 6%& C3%& Boa&Ventura& Degredo& MB1& Santa&Cruz&I& (=MB2)& Roaster& Broker& ! Figure&47:&Vale&Added&Distribution&Share&in&Value&Chain&A& 5.7. Market&Map&Framework&Value&Chain&A& The* market* map* framework* of* the* value* chain* A* (coffee)* is* represented* in* Figure& 48.* The* map* displays* the* enabling* environment,* which* can* cause* a* change* in* the* value* chain,* including* the* available* infrastructure,* policies,* institutions,* and* processes.* Additionally,* the* map* shows* the* offerings* of* extension* services* or* business,* which* gives* the* opportunity* to* upgrade* the* value* chain*level.* ! 95! ! Figure&48:&Market&Map&Framework&Value&Chain&coffee& The* six* step;analyses* revealed* the* enable* environment* existent* in* the* value* chain.* Laws,* taxes,* and* policies* can* help* alleviate* entanglements,* such* as,* the* Pro;family* farming* policies* and* programs,* or* can* also* cause* constraints,* such* as* the* case* of* commercialization* taxes* in* development*of*the*coffee*roasting*industry*in*the*State*of*Rio*de*Janeiro.*The*Institutions*MDA,* SEAPEC* and* extension* and* research* institutions* have* an* impact* on* value* chain’s* decisions.* It* is* important* to* consider* though* the* nature* of* the* coffee* sector,* susceptible* to* the* biannual* cycle* prices*volatilization,*which*impacts*the*vulnerable*groups*of*the*chain*mostly.*The*Brazilian*pro; export* position* in* the* coffee* sector* is* an* already* set* stage* to* expand* the* market* for* Varre;Sai,* considering*the*regional*relevance*of*this*producer*for*the*State*RJ.* Furthermore,* it* is* suggested* some* business* and* services* opportunities* of* improvement.* Facilitating* the* linkages* between* farmers* and* the* COOPERCANOL,* together* with* giving* more* support* for* farmer’s* organization* can* help* to* create* a* better* opportunity* for* commercialization* for* the* producers.* The* institutional* support* can* look* at* decisions* in* terms* of* improving* the* technological* standard* of* production* and* processing,* to* improve* final* product’s* quality* and* achieve*special*niches*of*markets,*such*as*the*specialized*and*quality*coffee.*However,*to*develop* a*self;sustained*value*chain,*it*is*also*necessary*to*establish*a*minimum*threshold*of*technology,* ! 96! and*assets,*which*can*contribute*to*an*upgrading*position*in*the*value*chain.*The*education*level* could*also*improve*this*matter.*The*already*in*place*initiatives*and*programs*should*continue*for* all*micro;basins,*with*a*special*set*targeted*most*vulnerable*groups.*It*is*important*to*address*the* situation* of* the* farmers* in* the* Micro;basin* “Onça”,* which* were* detected* in* this* study* the* most* disadvantageous*group,*due*to*either*internal*or*external*reasons.* Table& 32* summarizes* the* problematic* of* the* northwestern* coffee* in* RJ* according* to* cause* and* effect.* These* bottlenecks* could* be* tackled* by* the* actions* described* above* or* alleviated* due* to* farmer’s*resilience*in*the*face*of*environment*changes.* Table&32:&Cause&and&effect&of&the&bottlenecks&in&the&coffee§or&in&the&Northwest®ion&of&RJ& Problematic& Consequences& Mountainous&landscape& Difficult*mechanization,*high*operational*costs* Low&technological&pattern& Low*productivity,*low*quality,*low*competitiveness* Biannual&cycle& Prices*fluctuation*and*instability,*market*crisis,*difficult*commercialization,* difficult*finance* Demographic&change& Aging*of*farmer’s*population*and*rural*exodus*of*the*youth*due*to*lack*of* opportunities*for*employment*and*education* Scarce&labor&force& High*harvest*costs,*decrease*of*productive*area* Low&industrialization&in&the®ion& Agriculture*is*the*main*source*of*livelihood;*coffee*roasting*is*the*main* industrial*activity* Insufficient&communityCbased& Difficult*of*implementation*of*programs*and*solution*of*problems,*offside* organization& join*cooperative*will* Data*compiled*by*the*author*as*a*result*of*literature*consultation*and*field*research* & ! & 97! 6. CHAPTER:&RESULTS&AND&DISCUSSION&–&VALUE&CHAIN&B&HORTICULTURE& 6.1. Step&1:&Socioeconomic&context&of&the&Value&Chain&B:&Horticulture& 6.1.1. Overview&of&horticulture&in&the&world&and&Brazil& It* is* estimated* around* 1135.7* million* tonnes* of* vegetables* produced* worldwide,* within* a* total* harvested*area*of*58*million*hectares*in*2013*(FAOSTAT,*2013).*The*production*by*country*can*be* illustrated* by* the* shaded* averages* over* the* map* in* Figure& 49.* Conforming* to* Weinberger* &* Lumpkin* (2007),* horticulture* is* an* excellent* opportunity* to* increase* income* and* generate* employment* in* developing* countries* when* taking* care* of* farmer* inclusion* and* proper* investments* in* technologies* of* diversification.* Horticulture* is* one* of* the* most* profitable* agricultural*activities.*The*reason*is*that*the*production*has*a*short*cycle,*which*makes*possible* the*combination*of*many*sorts*of*crops.*Thus*it*results*in*real*profitability*in*space;time,*despite* the*intense*land*use,*labour,*and*inputs*required*(Bevilacqua,*2008).* * Figure&49:&Total&Vegetable&Production&(average&tonnes)&worldwide&in&2013& Source:*(FAOSTAT,*2013)* In*Brazil,*horticulture*is*an*important*sector*growing*more*than*any*other*agricultural*activity,*and* with*increasing*demand*(Mourão*&*Colombini,*2008).*In*2013,*Brazil*presented*a*total*of*468,698* ha*of*harvest*area*and*had*a*total*production*of*11,548*thousand*tonnes*of*vegetables*(FAOSTAT,* 2013),*as*represented*in*Figure&50.* ! 98! 2010* 2011* 2012* Total&Harvested&Area&in& Thousands&of&Hectares&(ha)& 505* 500* 495* 490* 485* 480* 475* 470* 465* 460* 455* 450* Thousands& Millions& Total&Vegetable&producnon&in& millions&of&tonnes& 11.7* 11.6* 11.5* 11.4* 11.3* 11.2* 11.1* 11.0* 10.9* 10.8* 10.7* 2013* * Figure&50:&Total&Brazilian&vegetable&production&in&millions&of&tonnes&(primary&axis&in&blue);&Total&harvest&area&in& thousands&of&hectares&(ha)&(secondary&axis&in&green)&over&the&period&from&2010&to&2013& Source*of*data:*(FAOSTAT,*2013).*Note:*Vegetable*crops*grown*mainly*for*human*consumption,*including*also*melons* on*the*category* In*agreement*with*ABCSEM*(2011),*it*is*estimated*to*be*cultivated*over*700*thousand*hectares*of* vegetables*reproduced*by*seedling*in*Brazil,*generating*around*2.4*million*direct*jobs*on*average* 3.5*employees/ha.*It*is*a*sector*that*makes*a*total*value*of*production*of*R$*4.3*billion,*2.7%*of* the*total*agricultural*production*value*in*Brazil*(IBGE,*2009).*Consistent*with*(Embrapa;Hortaliças* &*SEBRAE,*2010),*there*are*50*species*relevant*to*the*market,*in*which*only*eight*species*listed* bellow*represent*around*80%*of*the*market*share*of*vegetables*(Table&33).* Table&33:&Production&of&Vegetables&in&Brazil& Production& & (thousand&tonnes) Participation&(%)& Crop&Area&(thousand& Ha)& Yield&(tonnes/ha) Garlic& 102.23* Sweet&Potato& 505.35* 1%* 9.57* 10.63* 3%* 39.39* 12.19* Potato& Onion& 3553.77* 21%* 128.12* 27.45* 1538.93* 9%* 57.59* 24.93* Watermelon& 2163.50* 13%* 92.02* 21.98* Melon& 565.90* 3%* 22.06* 25.25* Tomato& 4187.65* 25%* 62.78* 60.67* 756.74* 5%* 26.15* 28.94* 3284.91* 20%* 313.20* 12.89* 16658.99* 100%* 750.88* Main&Vegetables& Carrot& 2& Other&fresh& 2,&3& vegetables& Total&Vegetable& 4& 4& 1& 22.19* 1* Note:* Majority* of* the* data* extracted* from* “Produção* Agrícola* Municipal”* (PAM)* 2013;* Data* from* PAM* 2012* (IBGE,* 2 3 2015d);* *Data*from*(Embrapa;Hortaliças,*2009);* *Data*from*(FAOSTAT,*2013)*–*estimative**of*FAO*of*vegetables*with* *4 minor*contribution; *Estimative*resulted*of*calculation*done*by*the*author*based*on*the*compiled*data*in*the*table.* ! 99! The*horticulture*production*is*composed*of*many*small*producers*and*various*origins*(Mourão*&* Colombini,*2008).*There*are*in*total*190,954*establishments*of*horticulture*production*in*Brazil,* wherein* 60%* is* concentrated* in* family;based* properties.* The* properties* range* in* less* than* 10* hectares* intensely* cropped,* and* represent* 63%* of* the* gross* value* of* production* of* horticultural* products*(IBGE,*2006a;*Melo*&*Vilela,*2007;*IBGE,*2006b).** The*horticulture*chain*creates*value*added,*where*the*farmer*stays*with*only*15.03%*of*the*share;* the*wholesale*market*with*28.40%;*and*the*retailer*market*with*56.57%*of*the*gross*value*of*the* vegetable* market* in* Brazil* (ABCSEM,* 2011).* It* is* important* also* to* remember* that* the* globalisation*has*changed*the*linkages*within*the*Brazilian*vegetable*production.*While*enabling* technological* and* structural* advances,* it* also* gave* rise* to* other* bottlenecks* to* overcome* the* increasing*competitiveness*of*the*sector*(Melo*&*Vilela,*2007).* 6.1.2. Horticulture&in&the&Mountain&Region&of&State&RJ& The* Mountain* Region* alone* produces* 90%* of* greens* and* more* than* 50%* of* vegetables* in* the* State*Rio*de*Janeiro*(Galliez*&*Schueler,*2004).*As*referred*by*Lima*(2010),*horticulture*in*Rio*de* Janeiro*has*increased*53.83%*from*1996*to*2006.*Leaf*vegetable*production*increased*188.17%,* and*fruit*vegetables,*9.19%*over*the*same*period,*says*the*same*author.*The*sector*presents*an* enormous* potential* for* growth,* due* to* its* huge* consumer* market* in* the* capital* Rio* de* Janeiro.* Also,* the* tropical* climate,* with* its* diverse* microclimates,* is* adequate* for* the* production* during* the* whole* year.* And* the* short* cycle* of* the* production* is* more* suitable* for* small* farmers* with* a* better*yield*per*area*(Lima,*2010).*Table&34*displays*the*main*vegetable*production*in*the*State*of* Rio*de*Janeiro,*relevant*to*this*study.** Table&34:&Studied&Vegetables&in&Rio&de&Janeiro&State&& Vegetable& N°&farmers& Production& (Tonnes)& Sales& (Tonnes)& Gross&Value& (1000&R$)& Chinese&cabbage& 120* 761* 752* 534.00* Lettuce& 2,943* 143,370* 142,561* 56,528.00* Beetroot& 620* 3,792* 3,770* 2,116.00* Cauliflower& 1,082* 17,452* 17,424* 10,818.00* Parsley& 1,131* 3,202* 3,183* 5,076.00* Tomato& 2,838* 114,175* 113,963* 97,388.00* Green&bean& 1,358* 8,180* 8,105* 5,911.00* Source*of*data:*Censo*Agropecuário*(IBGE,*2006b)* ! 100! The*Mountain*Region*vegetable*supply*is*characterized*as*closest*to*as*a*“green*belt”*of*the*city* of* Rio* de* Janeiro.* This* "green* belt"* respects* a* converged* structure* that* concentrates* the* production* in* a* polarized* consumer* market* in* the* capital* (Figure& 51)* (Seabra* &* Marafon,* n.d.).* The* Mountain* Region* produces* more* than* half* of* the* supply* of* leaf* vegetables,* e.g.* lettuce,* parsley,* cauliflower,* etc.* * It* also* contributes* to* the* provision* of* vegetables,* such* as* tomato* and* yams*(Ortiz,*2011b).** * Figure&51:&Green&belt&of&vegetables&of&the&capital&of&Rio&de&Janeiro& Source:*CEASA;RJ*Data*information*Centre*of*the*State*Rio*de*Janeiro*(2004)*IN*Seabra*&*Marafon,*n.d.** 6.1.1.1. Horticulture&in&Nova&Friburgo& Data* acquired* from* the* Municipal* Secretariat* of* Agriculture* and* Rural* Development* of* Nova* Friburgo*(2011)*indicates*that*there*is*a*diverse*agricultural*activity*in*the*city.*Nova*Friburgo*is* specialized*in*the*production*of*flowers*and*cut*foliage,**vegetable*crops,*and*other*varied*sized* productions.* There* are* around* 1,600* farms,* covering* an* area* of* 21,000* ha* (average* ≈* 13* ha/property).*From*the*2,400*farmers*involved*in*agricultural*production,*90%*are*small*farmers* (properties*up*to*40*ha).*Producers*are*organized*in*more*than*30*rural*associations*(Secretaria* de*Agricultura*e*Desenvolvimento*Rural*de*Nova*Friburgo,*2011).* In*horticulture,*Nova*Friburgo*has*a*great*diversity*of*products,*and*crops*of*more*than*50*species* and*distinct*varieties.*The*principal*crops*are*cauliflower,*parsley,*tomato,*cabbage,*broccoli*and* yam.* There* are* 931* properties* producing* vegetables* in* a* cultivated* area* of* 2,700* hectares.* The* ! 101! annual* production* is* around* 100,000* tonnes,* with* an* approximate* gross* value* of* R$* 60,000,000.00*(Secretaria*de*Agricultura*e*Desenvolvimento*Rural*de*Nova*Friburgo,*2011).* Additionally,*Nova*Friburgo*is*one*of*the*largest*producers*of*vegetable*crops*in*the*state*Rio*de* Janeiro.*The*city*is*a*leading*producer*of*cauliflower*in*the*country*(Iniciativa*Agenda*21*Comperj,* 2011).*Also,*it*is*a*significant*supply*of*83%*of*lettuce,*12%*of*chayote*and*33%*of*cabbage*in*Rio* de*Janeiro*(Seabra*&*Marafon,*n.d.).*Table&35*displays*the*most*relevant*vegetables*for*this*study* produced*in*Nova*Friburgo.* Table&35:&Studied&vegetables&production&in&Nova&Friburgo&in&2013& Vegetable& N°&producer& Production&(tons)& Area&(ha)& Gross&Value&(R$)& Lettuce& 50* 1,100* 50* 561,000.00* Cauliflower& 760* 20,420* 570* 23,687,200.00* Parsley& 77* 3,507* 77* 5,541,060.00* 1 1 2 1 Chinese&cabbage& 12 * 261 * ND * 212,000.00 * Beetroot& 113* 1,763* 68* 2,379,780.00* Tomato& 446* 24,528* 371* 61,565,280.00* Green&bean& 105* 1,660* 63* 5,595,548.00* Source:*Data*from*Aspa*2013*(EMATER;Rio,*2013b)* 1 No*updated*data*found,*used*data*from*2006*(IBGE,*2006b)* 2 ND:*no*data*found* 6.1.1.2. Vulnerability&of&the&Mountain&Region& Landslides* are* a* very* common* feature* in* the* mountainous* area* of* south;eastern* Brazil,* due* to* intense*summer*storms*(Fernandes*et*al.,*2004).*Rio*de*Janeiro*has*been*wide*used*as*an*object* of*research*for*landslide*probability*in*many*studies*(Coelho;Netto*et*al.,*2007;*Fernandes*et*al.,* 2004).* Nova* Friburgo* has* also* been* portrayed* as* a* case* study* in* landslide* susceptibility.* The* municipality* was* one* of* the* most* affected* areas* in* State* Rio* de* Janeiro* during* the* disaster* of* January* 2011,* with* extensive* damage* to* rural* infrastructures* (Bétard* et* al.,* 2014).* The* tragedy* occurred*in*the*Mountain*Region*in*January*2011,*and*hit*the*municipalities*of*Bom*Jardim,*Nova* Friburgo,*Teresópolis*and*Petrópolis,*with*a*death*toll*of*900*people*(CREA;RJ,*2011).*Figure&52&is* a*photograph*taken*three*years*after*the*landslide*happened,*just*to*illustrate*that*the*scars*still* prevails*in*the*rural*landscape*of*the*studied*areas.* ! 102! * Figure&52:&Landslide&on&the&rural&area&in&Nova&Friburgo&three&years&after&the&disaster& Photo*taken*by*the*author*(2014)* In*agreement*with*Freitas*et*al.*(2012),*there*is*certainly*climate*and*geophysical*vulnerability*in* the* Mountain* Region* of* Rio* de* Janeiro,* notably* market* by* landslides* and* flood* formation.* As* Nacinovic*et*al.*(2014)*states,*the*rural*mountainous*area*of*Rio*de*Janeiro*presents*accelerated* erosion* with* consequences* such* as* environmental* degradation* and* financial* loss.* The* risks* and* the* socio;environmental* vulnerability* are* intrinsically* linked* to* the* socioeconomic* conditions* established* combined* with* weak* governance* capabilities* in* building* disaster* risk* reduction* and* resilience*(Freitas*et*al.,*2012).** The* recovery* of* the* Mountain* Region* had* several* obstacles,* including* difficulties* of* acquiring* budget,*delay*in*the*release*of*municipal*budget*due*to*corruption*of*regional*mayors,*and*delay* due*to*the*bureaucracy*of*registration*and*resettlement*of*affected*households*(Prefeitura*do*Rio* de*Janeiro,*2015b).* 6.1.2. Production&in&the&Study&Area& The*production*of*the*studied*area*is*in*Table& 36.*The*results*displayed*reflects*only*the*output* obtained* from* 30* interviewed* farmers.* It* is* observed* that* the* communities* are* specialized* in* some*particular*vegetable.**For*instance,*Chinese*cabbage*was*only*found*in**“Rio*Grande”*and* “Florândia*da*Serra”*in*MB4.*Likewise,*lettuce*is*mainly*produced*in*“Rio*Grande”,*being*not*much* produced* in* the* other* communities* or* MB3.* MB3* is* specialized* in* beet,* green* beans* and* cauliflower* in* the* community* “Salinas”,* and* parsley* in* the* community* “Santa* Cruz”.* Also,* the* group*of*organic*producers*was*considered*apart*from*the*conventional*horticulture*production.* ! 103! The* organic* production* is* not* substantial* in* quantity,* but* it* is* very* diverse,* no* specialization.* In* the* regular* production,* on* the* other* hand,* the* farmers* are* specialized* only* in* lettuce,* or* only* cauliflower,*or*only*tomato*and*green*beans.* Table&36:&Annual&mean&production&and&total&production&of&studied&vegetables&in&the&Value&Chain&B& Community/& MicroCBasin& Tomato& (Ton)& Beet& (Ton)& Green& bean& (Ton)& Lettuce& (Ton)& Parsley&& (K&unit)& Chinese& cabbage& (Ton)& Cauliflower& (Ton)& Mean& Prod.& (Ton)& Mean& Prod.& (Ton/ha)& Barracão&dos& Mendes& 92.0* 0.0* 3.6* 20.0* 100.0* 0.0* 148.0* 90.9* 58.2* Florândia&da& Serra& 94.0* 9.0* 9.7* 28.3* 72.0* 5.0* 124.8* 68.6* 21.2* Rio&Grande& 102.3* 20.5* 37.5* 216.8* 0.0* 80.0* 274.0* 104.4* 38.3* Salinas& 144.0* 30.0* 37.5* 0.0* 73.5* 0.0* 230.0* 85.8* 41.0* Santa&Cruz& 24.0* 20.0* 3.0* 11.2* 130.0* 0.0* 40.0* 114.1* 15.2* Serra&Nova&e& Serra&Velha& 322.0* 21.0* 27.0* 0.0* 9.0* 0.0* 150.0* 132.3* 36.6* MB3& 168.0* 50.0* 40.5* 11.2* 203.5* 0.0* 270.0* 92.9* 34.5* MB4& 610.3* 50.5* 77.8* 265.2* 181.0* 85.0* 696.8* 98.3* 37.7* Organic& Producers& 1.2* 3.2* 1.2* 4.1* 3.6* 0.0* 24.1* 18.7* 9.1* Additionally,* it* can* be* said* that* the* production* of* vegetables* in* comparison* to* the* production* yield* of* vegetables* (tones/ha)* follows* a* positive* correlation* (Correlation* test,* p* <* 0.001),* which* can*be*represented*in*the*Figure&53.* # Figure&53:&Positive&correlation&between&total&vegetable&production&and&the&yield&(tonnes&per&hectare)&in&the& horticulture&value&chain& ! 104! 6.1.3. Household&socioCeconomic&survey&of&Value&Chain&B&(Horticulture)& Due* to* analysis* purposes,* results* were* grouped* in* micro;basin* MB3* “Santa;Cruz”* and* MB4* “Barracão* dos* Mendes”.* The* sample* by* micro;basin* was* unequal* (p=0.041,* z;score).* MB4* represented* 69%* of* the* sample* and* MB3* represented* 31%* of* the* sample.* The* reason* is* that* initially*the*target*micro;basin*was*MB4*only,*then*due*to*the*Brazilian*partnership*logistics;*the* MB3* was* incorporated* into* the* research* in* the* field.* Nevertheless,* the* distribution* by* communities*showed*equal*proportions.*The*relation*of*the*distribution*of*Community*by*Micro; basin* is* in* Table& 37.* “Rio* Grande”* represented* the* more* percentage* (35%)* of* the* micro;basin* MB4*(p=0.042);*and*“Salinas”*and*“Santa*Cruz”*represented*66.7%*(p<0.001)*and*33%*(p=0.006)* of*micro;basin*MB3,*respectively.* Table&37:&Community&and&MicroCbasin&Relation&(Value&Chain&B)& MicroCbasin& Community& MB3& Relative&frequency&to&the&total& Relative&frequency&to&theµCbasin& Santa*Cruz* 10.3%* 33.3%* Salinas* 20.7%* 66.7%* Barracão*dos*Mendes* 13.8%* 20%* Florândia*da*Serra* 17.2%* 25%* Rio*Grande* 24.1%* 35%* Serra*Nova*e*Serra*Velha* 13.8%* 20%* MB4& 6.1.3.1. Age&Group& The*observed*population*presented*a*uniform*and*normal*distribution*of*age,*and*an*estimated* mean* of* 43.552* ±* 4.67* years* old.* * The* distribution* of* age* is* in* Table& 38.* The* population* is* considerably*young,*presenting*24%*less*than*30*years*old;*38%*less*than*40*years*old,*and*66%* less*than*50*years*old.*These*age*groups*comprehend*the*Brazilian*economically*active*population* (IBGE,* 2014).* Only* 10%* of* the* households* were* considered* aged,* or* over* 60* years* old* (Brasil,* 2003).* Table&38:&Group&of&age&in&the&observed&population&(Value&Chain&B)& Age& Relative&Frequency& Inverse&Accumulative&Frequency& Accumulative&Frequency& 60*≤*Age*≤*70* 10%* 100%* 10%* 50*≤*Age*<*60* 24%* 90%* 34%* 40*≤*Age*<*50* 28%* 66%* 62%* 30*≤*Age*<*40* 14%* 38%* 76%* 20*≤*Age*<*30* 24%* 24%* 100%* * ! 105! The*relation*of*age*by*micro;basin*presented*the*same*pattern*of*distribution,*with*equal*means* MB3* (mean* 47.667* ±* 8.644)* and* MB4* (41.7* ±* 5.869).* It* also* showed* similar* medians,* as* represented*in*Figure&54.* * Figure&54:&&Relation&of&age&by&community&with&correspondent&medians&boxes&& (Kruskal;Wallis,*p*=*0.286)* 6.1.3.2. Gender&and&marital&status& The*household’s*gender*profile*resulted*in*unequal*proportions*with*a*male*predominance*72.4%,* and*the*female*ratio*of*27.6%,*meaning*that*it*was*interviewed*2/7*women*in*each*5/7*men.*The* interviewed*women*were*powerful,*being*head*of*the*family*or*even*community*leaders.*Women* were* very* representative* in* the* communities* “Barracão* dos* Mendes”* and* “Salinas”,* which* counted*50%*of*the*interviewees*in*both*communities*(Table&39).* Table&39:&Distribution&of&gender&by&community& Community* Barracão*dos*Mendes* Florândia*da*Serra* Rio*Grande* Salinas* Santa*Cruz* Serra*Nova*e*Serra*Velha* Female* 50.00%* 20.00%* 14.29%* 50.00%* 0.00%* 25.00%* Gender* Male* 50.00%* 80.00%* 85.71%* 50.00%* 100.00%* 75.00%* * ! 106! Regarding*the*marital*status,*the*majority*of*the*households*were*married,*representing*79.3%*of* the* sample.* The* minority* was* single* (10.3%)* or* a* category* called* “other”* (10.3%),* which* are* couples*co;living*together*as*“significant*other”,*however*without*a*civil*marriage.** 6.1.3.3. Occupation& Figure& 55* illustrates* the* distribution* of* occupation* of* the* observed* population.* There* were* observed* five* different* categories* of* occupation.* * 79.3%* are* just* “farmers”,* with* a* frequency* of* 77.8%* in* MB3* and* 80%* in* MB4;* and* 20.7%* are* farmers* and* have* an* additional* occupation.* For* instance,*the*categories*of*“driver”,*“public*officer”*and*“housewife”*presented*3.4%*of*frequency* each.**It*was*observed*10.3%*of*“agricultural*technicians”,*whom*the*percentage*in*MB4*is*10%,* and* in* MB3* is* 11.1%.* The* incidence* of* agricultural* specialists* is* seen* more* among* the* younger* farmers* (12.7%* higher* chance* at* 20* years* old).* One* reason* is* the* presence* of* the* Agricultural* College*“Rei*Alberto*I”*in*partnership*with*the*IBELGA*Institute*(Instituto*Bélgica*Nova*Friburgo)*in* Lower*Salinas.*The*IBELGA*has*the*intention*to*provide*better*inclusion*of*the*youth*in*agriculture* developed*within*the*Region*(Nova*Friburgo*Agora,*2014).*The*fact*highlights*the*importance*of* education*and*specialized*education*within*the*rural*areas.** * Figure&55:&Different&categories&of&occupation&of&the&households&interviewed& 6.1.3.4. Literacy&level& The* median* was* in* “incomplete* primary* education”* reaching* 44.83%* of* all* interviewees,* with* more* frequency* in* the* MB4* (55%* of* the* micro;basin)* than* in* MB3* (22.22%* of* the* micro;basin).* The* micro;basins* have* different* literacy* levels.* MB3* is* at* the* level* of* “primary* education”* (complete)*reaching*44.44%*of*the*micro;basin.*In*MB4,*the*frequency*was*only*15%*of*“primary* education”.*However,*illiteracy*frequency*can*be*observed*similarly*in*both*micro;basins.*Tertiary* education*was*only*present*in*the*MB3*(22.22%)*with*statistical*significance.*Results*are*found*in* Table&40.* ! 107! Table&40:&Literacy&level&byµCbasin& Literacy& MicroI basin" Illiterate* Incomplete* primary* education* Primary* education* Secondary* education* Tertiary* education* Min& (Literacy)& Max& (Literacy)& Median& (Literacy)& MB3* 11.11%* 22.22%* 44.44%* 0.00%* 22.22% * Illiterate* Tertiary* education* Primary* education* MB4* 10.00%* 55.00%* 15.00%* 20.00%* 0.00%* Illiterate* Secondary* education* Incomplete* primary* education* Total* 10.34%* 44.83%* 24.14%* 13.79%* 6.90%* Illiterate* Tertiary* education* Incomplete* primary* education* A A *statistically*significant*difference*(z;score,*p*=*0.029)*5%*confidence* 6.1.3.5. Household&size&& The*household*size*considered*the*number*of*children.*In*this*observed*population,*the*number* of*children*per*household*had*a*mean*of*1.828*±*0.627*children.*MB3*presented*a*mean*of*2*±* 0.941*children,*and*MB4,*a*mean*of*1.75*±*0.857*children.*The*number*of*children*had*a*normal* distribution.* However,* it* did* not* present* a* uniform* distribution,* due* to* the* frequency* of* ≥* 2* children*(37.93%),*and*2*≤*children*≤*4*per*household*(55.17%).*Larger*family*was*observed*only* one*case*≥*8*children*in*MB4.** 6.1.3.6. Household&income& The* household* income* survey* asked* in* a* non;intimidating* way,* about* the* monthly* household* income* (summing* all* income* of* all* contributing* households,* including* those* not* linked* to* the* farm).*The*farmer*could*choose*a*range*of*minimum*wages,*corresponding*to*R$*724,00*in*2014.* The*results*of*household*income*range*are*in*Table&41.** Table&41:&Income&Range&frequency&by&community&and&in&the&observed&population& MicroI basin" MB3& MB4& Household&income& Community" 6*≤*min.* wages*≤*9* 9*≤*min.*wages* ≤*12* Sum& 33.33%* 0.00%* 33.33%* 33.33%* 100.00%* 50.00%* 33.33%* 0.00%* 0.00%* 100.00%* 25.00%* 50.00%* 0.00%* 0.00%* 25.00%* 100.00%* 0.00%* 57.14%* 14.29%* 14.29%* 14.29%* 100.00%* 25.00%* 75.00%* 0.00%* 0.00%* 0.00%* 100.00%* 1*≤*min.* wages*≤*3* Santa&Cruz& 0.00%* Salinas& 16.67%* Serra&Nova&e&Serra& Velha& Rio&Grande& Barracão&dos& Mendes& Florândia&da&Serra& Observed&population& ! 3*≤*min.* wages*≤*6* ≤*1*min.* wage* 40.00%* 40.00%* 20.00%* 0.00%* 0.00%* 100.00%* 17.24%& 51.72%& 13.79%& 6.90%& 10.34%& 100.00%& 108! There* were* no* significant* differences* between* income* ranges* of* communities* or* micro;basins.* However*it*can*be*noted*that*in*general,*nearly*half*(51.7%)*of*the*households*presented*income* range*(1*≤*min.*wages*≤*3).*The*community*“Florândia*da*Serra”*had*the*higher*frequency*(40%)* of* lower* income* * (≤* 1* min.* wage).* “Barracão* dos* Mendes”* presented* 75%* the* range* (1* ≤* min.* wages*≤*3).*And*“Santa*Cruz”*showed*the*highest*income*range*of*all*communities,*exhibiting*a* frequency*of*33.33%*for*6**≤*min.*wages*≤*9,*and*33.33%*for*9*≤*min.*wages*≤*12.* 6.1.3.7. Property&profile& The*majority*of*the*properties*are*“owned”,*reaching*75.9%*of*the*observed*sample.*Only*24.1%* are* “granted”,* which* is* more* prevalent* in* the* case* of* sharecroppers,* as* previously* explained.* There* was* a* significant* difference* between* micro;basins* regarding* the* property* type.* MB3* only* presented*“owned”*properties*(100%),*according*to*the*interviews*of*this*study.*MB4,*however,* had* 35%* of* the* properties* in* the* category* “granted”,* which* is* statistically* significant* (Z;score,* p=0.0042).* It* is* remarkable* that* from* these* 35%* in* the* MB4,* 42.9%* are* in* the* community* “Barracão*dos*Mendes”,*summing*up*75%*of*frequency*in*the*whole*community.*And*42.9%*are* in*“Florândia*da*Serra”,*summing*up*60%*of*the*entire*community,*as*seen*in*Figure&56&and&Table& 42.*It*was*encountered*a*positive*correlation*between*the*category*"granted"*and*the*community* "Barracão* dos* Mendes"* (Correlation* test,* p* =* 0.008).* * The* condition* “granted”* has* 49.3%* more* predicted*chance*to*be*found*in*“Barracão*dos*Mendes”*than*in*any*other*community.* * Figure&56:&&Type&of&Property&by&community,&highlighting&the&condition&of&“granted”&& ! 109! Table&42:&Property&Type&at&Value&Chain&B& Type"of" Property" Community& * Barracão*dos* Mendes* Florândia*da* Serra* Rio* Grande* Salinas* Santa* Cruz* Serra*Nova*e* Serra*Velha* Total* Granted& 42.86%* 42.86%* 14.29%* 0.00%* 0.00%* 0.00%* 100.00%* Owned& 4.55%* 9.09%* 27.27%* 27.27%* 13.64%* 18.18%* 100.00%* In* this* study* area,* there* is* the* predominance* of* small* family* farms.* In* average* the* size* of* the* farms* was* considered* mini;properties,* i.e.* “minifundium”.* Nearly* 80%* of* the* households* presented*property*size*smaller*than*10*ha,*which*is*the*threshold*for*one*fiscal*module*(10*ha*in* Nova* Friburgo)* that* characterizes* family* farming* (INEA,* 2015).* The* distribution* of* farm* size* and* cultivated*area*departs*from*a*uniform*and*normal*distribution.*There*is*a*high*predominance*of* mini;properties*and*very*few*properties*larger*than*20*ha.*Additionally,*it*was*noted*that*the*farm* size*varies*according*to*the*micro;basin.*Mann;Whitney*test*(p*=*0.015)*revealed*that*the*medians* are*unequal,*wherein*MB4*has*notably*smaller*properties*than*MB3*(Figure&57).*To*have*an*idea,* 100%*of*properties*2*≤*farm*size*(ha)*≤*3*are*in*MB4,*and*80%*of*the*properties*3*≤*farm*size*(ha)* ≤*4*are*as*well*in*MB4.*These*mini;properties*are*particularly*found*in*the*community*“Barracão* dos*Mendes”,*representing*75%*of*2*≤*farm*size*(ha)*≤*3*in*this*community.** * Figure&57:&Farm&size&(ha)&byµCbasin&revealing&unequal&medians&and&significant&difference& Moreover,* there* was* a* positive* correlation* between* farm* size* (ha)* and* the* cultivated* area* (ha)* (Correlation*test,*p*<*0.001),*as*seen*in*Figure&58.*The*correlation*implies*that*besides*being*very* small* properties,* the* farmers* make* use* of* almost* all* area* to* cultivate* vegetables* and* achieve* maximum*outcome*as*possible.*Only*relatively*larger*properties*hold*smaller*vegetable*cultivated* area,*due*to*the*destination*of*the*area*to*other*agricultural*or*livestock*activity.* ! 110! * Figure&58:&Positive&correlation&between&farm&size&(ha)&and&cultivated&area&(ha)& 6.1.3.8. Findings&of&the&household&survey& The* socioeconomic* survey* was* useful* to* find* that* the* population* of* the* micro;basins* studied* is* considered* young;* women* have* representativeness* in* their* communities;* the* predominance* of* married* households* strengthens* the* family* farm* core.* Additionally* the* presence* of* a* technical* agriculture* college* in* the* region* had* a* positive* impact* on* the* population.* In* general,* MB4* “Barracão* dos* Mendes”* is* at* a* comparative* socio;economic* disadvantage* in* relation* to* MB3* “Santa*Cruz”.*MB4*presented*almost*all*indicators*at*a*lower*position,*in*terms*of*lower*level*of* education,* higher* household* size* (more* children),* lower* income* range,* more* frequency* of* sharecropping* and* particular* smaller* properties.* This* condition* is* more* accentuated* in* the* communities*of*“Barracão*dos*Mendes”*and*“Florândia*da*Serra”,*considered*by*this*analysis*as* the*most*vulnerable*in*socio;economic*terms.* 6.2. Step&2:&Demand&for&horticulture&value&chain&outputs& 6.2.1. Demand&and&trends&on&vegetable&consumption& The* Household* Budget* Survey* (IBGE,* 2010b)* studied* the* household* food* acquisition* in* Brazil,* Regions*and*States.*The*survey*reported*that*the*annual*consumption*of*vegetables*in*Brazil*is*on* average*27,075*kg*per*capita.*Additionally,*the*same*study*revealed*that*the*Southeast*Region*is* the* second* largest* consumer* of* vegetable* in* Brazil* (27,995* kg* per* capita* year;1).* And* from* the* Southeast,* Rio* de* Janeiro* presented* higher* consumption* in* comparison* to* other* states* in* the* region,*reaching*an*average*of*30,068*kg*per*capita*year;1.** ! 111! The*consumption*of*the*studied*vegetables*in*Rio*de*Janeiro*are*total*herbaceous*vegetable*3,414* kg;*where*Chinese*cabbage,*lettuce*and*cauliflower*have*consumption*of*0,361;*0,751;*0,317*kg* per*capita*year;1*respectively.*Fruit*vegetables*presented*a*consumption*of*13,327*kg*per*capita* year;1,*where*tomato*represented*4,333;*and*green*bean*0,346*kg*per*capita*year;1.*The*total*root* vegetable*is*13,328*kg*per*capita*year;1,*where*beetroot*contributes*to*0,377*kg*per*capita*year;1* (IBGE,*2010b).* Another*publication*done*for*the*same*Household*Budget*Survey*(IBGE*et*al.,*2010)*focused*more* on*the*nutritional*status*and*food*availability.*The*nutritional*study*reported*that*the*percentage* of*vegetable*in*the*daily*caloric*intake*is*only*2,8%,*just*one;quarter*of*the*recommended*intake* of* 9%* to* 12%* (400g).* It* is* important* to* consider* that* the* WHO* (2015)* recommends* the* consumption*of*at*least*400g*or*5*portions*of*vegetable*and*fruit*a*day,*in*order*to*reduce*the*risk* of*non;communicable*diseases*(NCDs)17*and*to*provide*the*adequate*daily*intake*of*dietary*fibre.* In*Rio*de*Janeiro,*the*participation*of*vegetable*in*the*dietary*caloric*intake*is*just*1%,*basically* composed*of*tomato*and*other*vegetables*(IBGE*et*al.,*2010).* The* Food* and* Nutrition* Guide* for* the* Brazilian* Population* (Brasil,* 2014a)* identified* that* eating* patterns* in* Brazil* have* changed,* replacing* the* formerly* consumed* fresh* vegetables* by* industrialized*ready*to*eat*preparations.*The*population*has*presented*an*excessive*consumption* of*refined*sugar*and*processed*foods*and*insufficient*consumption*of*fruit*and*vegetables*(IBGE* et* al.,* 2010).* The* major* diseases* that* currently* affect* Brazilians* have* become* chronic,* characterized*by*an*expressive*increase*of*overweight*and*obesity*in*all*ages,*counting*on*average* one*in*every*two*adults*and*one*in*every*three*children*(Brasil,*2014a).** Socioeconomic* factors* have* a* significant* influence* on* the* consumption* of* fruit* and* vegetables* and*are*subject*to*intervention*to*contribute*to*healthier*habits*(Mondini*et*al.,*2010).*Vegetable* consumption*tends*to*increase*by*up*to*187%*as*increase*the*household*purchasing*power*(IBGE,* 2010b).*Also,*there*is*a*need*to*promote*the*consumption*of*fresh*food*in*healthier*preparations* and*also*strengthen*the*linkage*with*socially*and*environmentally*sustainable*production*systems* (Brasil,*2014a).* The* profile* of* the* vegetable* consumer,* mainly* in* large* consumer* centres* has* become* more* exigent*in*terms*of*quality*and*nutritional*facts*(Melo*&*Vilela,*2007).*According*to*Lima*(2010),* there*is*an*increasing*demand*for*higher*quality,*organic,*mini*processed*added*value,*small*and* more* convenient* packaging* and* certified* labels* ensuring* the* origin* of* the* product.* There* is* a* greater*desire*for*non;conventional*vegetables,*as*a*demand*originated*from*the*habit*of*eating* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 17 *E.g.*diabetes,*heart*disease,*stroke*and*cancer*(WHO,*2015)* ! 112! outside* home.* For* instance,* consumers* are* willing* more* innovative* veggies* with* a* variation* of* colour*and*size*pattern*and*exotic*flavour*(Junqueira*&*Luengo,*2000;*Melo*&*Vilela,*2007).*In*this* group,* the* “mini”* and* “baby”* vegetables* are* gaining* momentum,* e.g.* mini* tomatoes,* baby* carrots,*and*baby*leaf*vegetables*(Carvalho*et*al.,*2013).* Processed*vegetables*have*been*an*opportunity*for*a*market*niche*of*higher*income*and*easier* consumption,* e.g.* frozen,* preserved,* lyophilised,* dehydrated,* such* as* peeled* tomatoes,* frozen* peas*and*broccoli,*pepper*in*oil*(Carvalho*et*al.,*2013;*Junqueira*&*Luengo,*2000).*Also,*there*is*a* trend*for*mini*processed*vegetables,*as*a*tendency*of*the*purchasing*preferences*in*the*retailer* and*supermarkets.*And*organic*(bio)*vegetables,*as*an*increasing*demand*for*healthier*and*free*of* chemicals*vegetables*(Junqueira*&*Luengo,*2000).** Additionally,* since* vegetables* are* part* of* a* healthy* balanced* diet,* the* consumption* has* pushed* this*market*further*to*contribute*the*daily*food*consumption*of*vegetables*(Alves*&*Silochi,*2010).* The*eating*habits*of*Rio*de*Janeiro*are*changing*to*a*healthier*diet;*for*instance,*school*meals*are* introducing*more*vegetables,*due*to*food*regulations*to*prevent*the*NCDs*(Lima,*2010).* Brazil*has*not*yet*taken*the*external*market*of*horticulture.*The*country*has*only*a*total*sale*of* 260* thousand* tonnes/year,* which* represents* over* 1%* of* the* total* production* (Carvalho* et* al.,* 2013).*As*reported*by*Melo*&*Vilela*(2007),*the*participation*of*Brazil*is*very*limited*and*restrict* to* few* commercialized* species* such* as* melons,* peppers,* bell* peppers* tomatoes* and* ginger.* Although* the* Brazilian* horticulture* production* has* shown* great* potential* to* meet* demand,* this* latter* has* not* met* the* expectations,* in* which* domestic* consumption* is* lagging* behind* the* real* needs*(Carvalho*et*al.,*2013).* It*is*relevant*that*the*State*Rio*de*Janeiro*faces*a*deficit*of*the*Fluminense's*supply.*As*stated*by* Lima*(2010),*Rio*de*Janeiro*state*is*an*importer*of*vegetables*from*other*states,*and*only*28%*of* the*total*vegetable*commercialized*in*the*CEASA;RJ*is*produced*in*Rio*de*Janeiro.*The*eight*major* vegetable* crops* demanded* in* Rio* de* Janeiro,* e.g.* watermelon,* strawberry,* melon,* carrot,* pumpkin,*sweet*potato,*beet*and*sweet*corn,*have*an*inexpressive*local*production.*The*deficit* opens* space* for* the* supply* of* other* states,* occupying* a* considerable* share* of* the* market,* thus* giving*their*farmers*the*value*of*output,*the*same*author*reports.*Rio*de*Janeiro’s*producers*lose* the*competitiveness*in*roots,*such*as*carrots*and*potatoes,*because*the*producers*from*São*Paulo* and*Minas*Gerais*have*higher*level*of*technology*applied*to*their*crops*(Ortiz,*2011b).*However,*a* simple* reduction* of* the* deficit* by* 20%* would* provide* a* gross* value* of* R$* 42.352.160* to* Rio* de* Janeiro’s*producers*(Lima,*2010).* ! 113! 6.2.2. The&supply&and&distribution&system&in&Rio&de&Janeiro& The* vegetable* supply* of* Rio* de* Janeiro* is* mainly* carried* out* in* three* ways.* The* first* and* most* important* historically* is* the* commercialization* via* CEASA* (Galliez* &* Schueler,* 2004).* The* wholesale*market*system*(CEASA)*is*still*the*main*commercialization*channel*of*vegetables.*It*is* estimated*that*around*55%*up*to*60%*of*the*total*volume*of*vegetables*commercialized*in*Brazil* is* through* the* CEASA* System,* even* with* the* high* frequency* of* intermediaries* in* the* process* (Vilela*&*Henz,*2000).*The*CEASA*Grande;Rio*is*the*main*distributor*and*supplier*of*vegetables*in* Rio*de*Janeiro*(Table*42),*according*to*the*research*conducted*by*Lima*(2010)* The*second*is*the*large*network*of*supermarket*chains,*which*negotiate*large*quantities*directly* to* the* producers* (Galliez* &* Schueler,* 2004).* It* has* been* observed* an* increasing* participation* of* the* supermarket* chains,* which* counts* to* 50%* for* the* commercialization* of* vegetables* in* large* urban*centres*(César*&*Melo,*2005),*with*a*drift*of*mini*processed*and*frozen*vegetables*(Vilela*&* Henz,*2000).** And* third* is* the* direct* sale* from* the* producer* to* the* consumer,* more* specifically* developed* in* niche* markets* such* as* the* organic* products* (Galliez* &* Schueler,* 2004).* Following* Vilela* &* Henz* (2000),* the* direct* purchase* from* the* farmer* is* performed* through* street* market* vendors,* supermarkets,* truck* vendors,* grocery* stores* and* institutional* consumers,* like* hospitals,* schools* and*restaurants.* Table& 43* displays* the* different* distribution* centers* of* Rio* de* Janeiro* and* the* main* commercialization* channels* of* fruit* and* vegetables.* Also* it* is* displayed* from* which* supplier* the* commercialization*channels*usually*purchase*their*produce.** Table&43:&Frequency&of&supply&by&different&distribution¢ers&to&the&main&commercialization&channels& Main&Suppliers& Supermarket& Retailers& “Hortifruti”& Street&market& CEASA*Grande;Rio* 78.7* 100.0* 85.7* 82.6* Other*wholesale*centres* 8.5* 16.7* 20.0* 13.0* Direct*purchase*from*producer* 21.3* 25.0* 28.6* 13.0* Other*suppliers* 25.5* 0.0* 8.6* 4.3* Source:*(Lima,*2010)* Table&44*lists*the*preferable*vegetable*and*fruit*commercialization*locations*by*the*consumers*in* the*city*of*Rio*de*Janeiro,*according*to*the*research*performed*by*Lima*(2010).*Supermarket*and* Street* market* are* the* preferable* locations* to* purchase* vegetables,* according* to* the* same* research*of*Lima*(2010).* ! 114! Table&44:&Locations&of&vegetables&and&fruits&commercialization&by&consumer&preference& Location* Preference*(%)* Hortifruti*chain* 57.7%& Supermarkets* 55.3%* Street*market* 43.0%* Other*retailer* 20.7%* Grocery*store* 1.8%* Street*vendor* 1.3%* Other* 4.8%* *Source:*(Lima,*2010)* 6.2.3. The&CEASACRJ&wholesale&market&distribution&system& The*CEASA;RJ*(Central*Supply)*is*a*wholesale*market*system*created*in*the*70’s.*The*aim*of*the* CEASA* is* to* act* on* the* commercialization* of* agricultural* produce,* and* to* be* responsible* for* the* concentration* and* further* distribution* of* produce* to* the* retailer* markets* in* the* State* Rio* de* Janeiro* (Seabra* &* Marafon,* n.d.).* It* is* a* place* to* congregate* small* and* medium* producers,* individual*merchants,*organizations,*and*producer’s*cooperatives*and*associations*(Ortiz,*2011a).* The* CEASA;RJ* is* linked* to* the* State* Secretariat* of* Regional* Development,* Supply,* and* Fisheries.* There*are*six*units*in*Rio*de*Janeiro:*Grande;Rio,*São*Gonçalo,*Mountain*Region*(Nova*Friburgo),* Region* Northwest* Fluminense* (Itaocara),* North* Fluminense* Region* (São* José* de* Ubá)* and* East* Region*Paraíba*(Paty*do*Alferes)*(CEASA;RJ,*2015a).*The*Unit*Grande;Rio,*located*in*Irajá,*in*the* north* of* the* city,* is* the* second* largest* Central* Supply* in* Latin* America* (CEASA;RJ,* 2015a).* The* CEASA*“Grande;Rio”*occupies*an*area*over*two*million*m2,*where*around*60*thousand*people*and* hundreds*of*trucks*circulate*every*day.*The*commercialization*of*the*produce*starts*at*3:00*AM*till* the*midday*(Ortiz,*2011a).* Conforming*to*Conab*(2015c),*the*wholesale*supply*system*of*CEASA;RJ*commercializes*a*total*of* 1,682,508,000* kg* of* agricultural* produce,* generating* around* R$* 3,414,575,000.00* of* value* in* 2014.*The*unit*in*the*city*Rio*de*Janeiro*(Irajá)*contributes*to*the*majority*of*food*distribution,*as* seen* in* Table& 45.* The* CEASA;RJ* commercializes* vegetables* originated* from* the* municipalities* represented* in* Figure& 59.* In* comparison* to* other* CEASA* units,* Grande* Rio* unit* is* peculiar.** Because* the* majority* of* the* produce* commercialized* is* greeneries,* originated* mainly* from* the* Mountain*Region*RJ*(Seabra*&*Marafon,*n.d.).* ! 115! Table&45:&Commercialization&of&produce&in&CEASACRJ&Units&in&the&period&2013/2014& 2013& Unit&CEASACRJ& 2014& Quantity&of&Produce& (kg)& Value&of&Produce& (R$)& Quantity&of&Produce& (kg)& Value&of&Produce& (R$)& Rio&de&Janeiro& 1,423,913,000* 2,935,579,000.00* 1,463,398,000* 3,033,700,000.00* São&Gonçalo& 198,279,000* 274,545,000.00* 161,167,000* 306,935,000.00* Nova&Friburgo& 15,321,000* 21,794,000.00* 13,238,000* 14,570,000.00* Paty&do&Alferes& 15,452,000* 23,960,000.00* 13,297,000* 19,858,000.00* São&José&de&Ubá& 19,090,000* 15,078,000.00* 1,654,000* 1,859,000.00* Mercado&do&Produtor& (Itaocara)& 27,586,000* 27,444,000.00* 29,754,000* 37,653,000.00* Total&CEASAs&RJ& 1,699,641,000& 3,298,400,000.00& 1,682,508,000& 3,414,575,000.00& Source*of*data:*(Conab,*2015c)* * Figure&59:&Main&vegetable&supplier&municipalities&of&the&CEASACRJ* Source:*(Lima,*2010)* The*Pavilion*21*in*“Ceasa*Grande*Rio”*is*intended*for*the*small*producer*of*State*Rio*de*Janeiro,* through*a*concession*obtained*by*EMATER;RIO.*The*small*producer*can*acquire*a*“stone”18*(area* delimited* in* the* Pavilion),* where* he* is* allowed* to* commercialize* his* goods* (Seabra* &* Marafon,* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 18 Stone*means*the*demarcation*on*the*pavilion*floor*where*the*goods*are*exposed,*correspondent*to*15*square* meters*(in*Brazilian*portuguese*original,*“pedra”)*(Seabra*&*Marafon,*n.d.)* ! 116! n.d.).* The* Pavilion* 21* was* important* for* the* consolidation* of* the* vegetable* production* in* the* Mountain*Region*by*giving*the*farmers*better*competitiveness*with*other*the*merchants*(Lima,* 2010).*Today,*more*than*half*(51.3%)*of*the*producers*in*the*Pavilion*21*are*from*Nova*Friburgo* and* Teresópolis* (Seabra* &* Marafon,* n.d.).* There* is* also* the* Pavilion* 30* intended* to* the* family* farming.* Only* farmers* belonging* to* the* Pronaf* can* commercialize* there* (Ortiz,* 2011a;* Galliez* &* Schueler,* 2004).* According* to* experts* from* CEASA* Seinp* (expert’s* consultation),* the* Pavilion* 21* has*in*total*800*farmers*registered*summing*up*total*revenue*of*R$36*million*monthly.* 6.2.3.1. Identified&Problematic&of&the&CEASA&system& The* underperformance* of* the* vegetable* supply* and* distribution* system* is* one* of* the* main* bottlenecks*affecting*the*horticulture*chain*(Lourenzani*&*Silva,*2004).*According*to*Melo*&*Vilela* (2007),*there*have*been*changes*in*the*supply*and*distribution*of*vegetable*that*has*challenged* the* whole* the* horticulture* chain.* The* CEASA* faces* problems* in* concealing* supply* and* demand.* The* main* reason* is* due* logistics* and* quality* issues,* which* consequently* has* withdrawn* most* of* the*supermarket*chain*out*of*the*central*wholesale*market*(CEASA)*(Lourenzani*&*Silva,*2004).** However,*before*entering*the*problematic,*first*one*must*understand*the*historical*context*that* permeates* the* Wholesale* Market.* Mourão* &* Colombini* (2008)* attributed* the* burden* of* the* current*decline*of*the*CEASA*system*as*a*matter*of*the*poor*management*of*the*Brazilian*central* government* since* the* 80's.* According* to* them,* the* central* government* invested* erroneously* or* failed*to*invest*in*the*CEASAs,*and*consequently*left*the*responsibility*of*management*in*charge* of*the*states*and*municipalities.*The*CEASAs*then*were*unruly,*and*each*unit*followed*its*course* of*evolution,*regression*or*complete*stagnation,*according*to*the*same*authors.* Particularly* in* Rio* de* Janeiro,* there* have* been* historically* problems* in* food* supply* and* related* public* policies.* Seabra* &* Marafon* say* that* the* city* Rio* de* Janeiro* suffered* at* beginning* of* the* 20th* century* from* problems* of* food* supply.* Problems* were* due* to* an* elevated* population* growth,*characterized*by*a*purchasing*power*class*in*need*of*products*at*expensive*prices*and*a* penurious*service*at*the*suburb.*The*CEASA*system*was*created*to*overcome*the*increasing*food* supply* issues* of* the* 60’s* and* to* organize* the* commercialization* of* agricultural* produce,* say* the* same*authors.** However,* the* city* of* Rio* de* Janeiro* already* has* a* dynamic* urban* expansion* of* high* content,* regardless* to* basic* standards* of* organization* (Esher* Filho* &* Reis,* 2004).* It* is* possible* to* understand*that*due*to*an*insufficient*integration*of*activities,*whether*it*is*on*consumption,*or* on* services,* there* is* certainly* a* generalized* deficiency* of* attendance.* The* deficiencies* create* ! 117! consequently*higher*operational*costs,*and*to*a*great*extent*more*time*than*required*to*carry*out* any*activity*to*meet*the*sector*(Esher*Filho*&*Reis,*2004).** In*order*to*exemplify,*the*road*network*of*the*State*RJ*was*designed*to*connect*the*production* areas*with*the*supply*and*distribution*centres*in*a*strategic*manner*(Lima,*2010),*for*instance,*the* “CEASA* Grande* Rio”* unit,* the* supply* centre* of* Irajá,* is* located* at* the* “Avenida* Brasil”* which* is* near* very* important* access* roads* like* the* Via* Dutra* and* the* BR;040* (Seabra* &* Marafon,* n.d.).* However,*Esher*Filho*&*Reis*(2004)*pointed*out*that*the*CEASA*Grande*Rio*is*now*situated*inside* the*urban*mesh,*surrounded*by*the*territorial*occupancy*density*of*slums*and*unstructured*urban* cores.* Additionally,* the* “Avenida* Brasil”* has* been* recently* oversaturated* by* stark* traffic* difficulties*of*heavy*load*vehicles,*and*it*constitutes*undoubtedly*an*obstacle*to*the*utilization*of* the* supply* centre* (Esher* Filho* &* Reis,* 2004).* Figure& 60* illustrates* the* current* location* of* the* CEASA*Grande*Rio*unit*inside*the*urban*mesh.* * Figure&60:&CEASA&“GrandeCRio”&and&“Avenida&Brasil”&(BR101)&location&surrounded&by&the&urban&concentration& Source:*Google*Earth*(2015)* During*the*data*collection*in*the*CEASA;RJ,*it*was*noted*that*the*wholesale*center*has*a*difficult* access,*considering*the*traffic*in*the*region*and*its*distance*to*the*main*consumer*sites*in*the*city.* Besides,* the* region* surrounding* the* CEASA* was* considered* dangerous* by* the* same* people* who* work*on*the*local,*due*to*the*concentration*of*slums*and*risk*to*violence.*It*was*not*advisable*to* walk*there*for*data*collection*after*4*pm,*due*to*the*risk.*Leonardo*Brandão,*president*of*CEASA,* stated* in* an* interview* (Ortiz,* 2011a)* that* the* situation* of* the* CEASA;RJ* was* very* critical* and* ! 118! declining* by* 2011.* There* was* a* “cracolândia”,* a* place* for* drug* dealing,* and* even* infant* sexual* abuse,*and*by*far*needed*urgent*renewing*of*the*place,*he*said.* It* was* identified* a* very* poor* infrastructure* on* the* site,* showing* signs* of* disorganization,* lack* of* infrastructure*for*the*conservation*of*products*exhibited.*Products*were*exposed*from*dawn*until* noon*at*temperatures*between*30;40°C*in*the*summer*(when*the*data*collection*was*made*Nov; Feb).* This* fact* was* completely* disregarding* the* quality* and* the* waste* of* vegetables* that* were* thrown*literally*in*the*bin.*The*observed*waste*was*high,*around*80*tons*per*day,*according*to*the* CEASA* Grande;Rio* Manager.* Several* buckets* were* viewed* exhaling* a* strong* odor* of* perishing* vegetables* at* a* distance,* which* was* intensified* by* the* warm* weather.* The* waste* liquid* leaked* directly* on* the* parking* spot,* where* occurs* loading* and* unloading* of* goods.* It* was* observed* people*collecting*waste*products*to*find*food*or*to*look*for*products*that*can*be*resold,*often*still* found*in*whole*and*closed*packages.** This* observed* fact* is* also* affirmed* by* Esher* Filho* &* Reis* (2004).* They* say* that* the* CEASA;RJ* no* longer* attends* the* necessities* of* storage,* does* not* have* refrigerated* containers,* parking* for* loading*and*unloading*procedures*is*reduced.*Besides,*there*is*the*environmental*problem*caused* by* the* inadequate* waste* residue* of* unsold* products* (Figure& 61),* and* problems* with* price* volatilization*due*to*conditions*imposed*by*the*middlemen.** * Figure&61:&Inadequate&waste&disposal&at&the&parking&place&and&lack&of&refrigeration&for&vegetables&commercialized&in& CEASACRJ&Grande&Rio& Photos*taken*by*the*author*(2014)* Seabra*&*Marafon*(n.d.)*also*observed*problems*regarding*the*agricultural*commercialization*in* the* CEASA;RJ* System.* For* them,* there* is* an* asymmetry* of* spatial* interactions* in* the* wholesale* market.* The* poor* infrastructure* offers* an* inadequate* commercialization,* mainly* for* the* small* producer*of*Rio*de*Janeiro,*which*has*difficulties*with*the*middlemen*and*transportation*issues.** ! 119! It* was* perceived* through* the* research* that* the* situation* remains* disordered* because* there* is* a* lack* of* motivation* to* improve,* and* no* incentive* to* avail* resources* in* the* sector.* The* administration* of* the* wholesale* lacks* of* employees,* salaries* are* low,* and* staff* loses* the* motivation* to* work,* and* consequently* don’t* make* an* effort* to* improve.* Many* traders* also* reported*that*the*routine*is*exhaustive,*and*the*conditions*of*infrastructure*and*disorganization* discourage*working*on*the*site,*worsened*by*the*additional*low*hygiene*and*security*conditions,* e.g.*no*available*restroom*available*for*traders.* Additionally,*the*distribution*to*the*retailers*has*diminished*significantly,*due*to*the*development* of* big* supermarket* chains,* which* do* not* depend* anymore* on* the* CEASA* (Esher* Filho* &* Reis,* 2004).*The*supermarkets*trade*large*amounts*of*products,*and*the*decrease*might*be*explained* by*the*frequent*problems*with*high*operational*costs*and*time;consuming*of*loading*procedures* in* the* CEASA* (Esher* Filho* &* Reis,* 2004).* The* change* seems* to* be* irreversible.* However,* the* transformation* has* caused* an* overall* improvement* (Melo* &* Vilela,* 2007).* The* supermarkets* would* play* an* important* role* in* the* development* and* the* transformation* of* the* agricultural* products*commercialization*(Seabra*&*Marafon,*n.d.).* As* suggested* by* Galliez* &* Schueler* (2004),* it* is* of* paramount* importance* to* develop* public* policies*and*projects,*to*reorganize*a*new*model*of*supply*and*distribution*in*Rio*de*Janeiro.*In* this*way,*to*achieve*a*better*chain*performance*with*fewer*inequalities,*it*is*important*to*support* strategically* all* the* sector* related* to* the* supply* and* distribution,* whether* the* CEASAs,* the* supermarket*chains,*or*the*street*market.* 6.2.4. Retail&Sector&in&Rio&de&Janeiro& The*increasing*demand*for*the*supermarket*chains*and*other*retailers*is*due*to*the*convenience* of*shopping.*The*consumer*can*purchase*vegetables*together*with*other*monthly*purchases*and* pay*at*once*in*only*one*establishment*(Geraldini*&*Silveira,*2010).*The*supermarket*chains*own* now*(César*&*Melo,*2005)*around*50%*of*the*market*of*fresh*vegetables*in*large*urban*centers.*** Although* the* majority* of* vegetables* are* still* commercialized* through* the* CEASA* System,* supermarkets*and*retailers*have*found*more*effective*ways*to*commercialize*their*products.*They* acquire* their* supply* directly* to* the* production* source* or* through* specialized* wholesalers* (Lourenzani* &* Silva,* 2004).* The* supermarket* chains* and* grocery* stores* have* a* special* structure.* These* retailers* buy* directly* from* the* producers,* which* provide* security* of* the* purchase* and* certainty*of*the*price*paid*to*the*farmers.*However,*the*supermarkets*also*require*higher*quality* standards,*which*inevitably*implies*higher*producing*costs*(Galliez*&*Schueler,*2004).** ! 120! To* supply* the* supermarket* chains,* the* producer* needs* to* improve* assets* at* a* minimum* in* packinghouses* and* logistics* (Geraldini* &* Silveira,* 2010).* The* same* last* article* also* lists* the* main* requirements* of* the* supermarket* chains,* which* include* quality,* standardization,* regular* supply,* prices,*discount*and*bonus,*and*packaged*products.*Table&46*ranks*the*three*larger*supermarket* chains*in*Rio*de*Janeiro.* Table&46:&Ranking&of&the&three&largest&supermarket&chains&in&Rio&de&Janeiro& Brand& & & & Name& Gross&value& N°&of&shops& Supermercado*Zona*Sul* R$*1,437,272,053.70* 34* Mercado*Torre*de*Jacarepaguá* R$*696,141,473.00* 35* Intercontinental*Comércio*de*Alimentos*Ltda* R$*640,417,895.00* 21* Source* of* data:* Raking* from* Supermercado* Moderno,* 2015;* Zona* Sul,* 2015;* Rede* Supermarket,* 2015;* Inter* Supermercados,*2015* It*is*important*to*highlight*the*participation*of*the*“Hortifruti”*retailer*chain.*The*"Hortifruiti"*is* the*largest*retailer*of*fresh*produce*in*Brazil,*achieving*31*stores*located*in*Espírito*Santo,*Rio*de* Janeiro*and*São*Paulo,*including*two*distribution*centres,*and*units*in*CEASA;RJ*and*CEAGESP*(in* São*Paulo).*The*chain*commercializes*in*average*16*thousand*tons*of*fruit*and*vegetables*for*1.8* million*costumers*(Rede*Varejista*Hortifruti,*2014).* In* this* research* was* not* achieved* to* interview* the* large* network* supermarket* chains.* The* network* called* “Tutti;frutti”* which* is* important* in* the* city* Nova* Friburgo* represents* the* retail* sector* of* the* studied* value* chain* (Figure& 62).* “Tutti;frutti”* is* located* in* the* center* of* Nova* Friburgo*is*pretty*much*similar*to*the*“Hortifruti”*retailer*chain,*and*practices*activities*related*to* the*retail*sector*and*also*mini;processed*vegetables.*The*interviewed*staff*from*Tutti;frutti*said* the*main*bottleneck*is*the*need*to*purchase*vegetables*from*distant*regions*and*attributed*the* main*problem*of*the*commercialization*due*to*logistics.** * ! 121! * Figure&62:&TuttiCfrutti&retailer&chain¢er&of&city&Nova&Friburgo& Photo*taken*by*the*author*in*2014* 6.2.5. Street&Market&in&Rio&de&Janeiro& Agreeing*to*Rio*de*Janeiro’s*City*Hall,*the*street*market*exists*in*Brazil*since*colonial*times;*today* still* there* are* 160* street* markets* in* diverse* districts* of* the* city* Rio* de* Janeiro.* The* segment* generates* around* 6* thousand* jobs* and* supplying* around* 10%* of* the* volume* of* produce* commercialized*in*Rio*de*Janeiro*(Nagel*et*al.,*2007).*The*street*market*is*regulated*by*the*Law*N°* 492*of*1984*(Prefeitura*do*Rio*de*Janeiro,*1984).*According*to*the*regulation,*the*street*markets* in* the* capital* Rio* de* Janeiro* are* intended* to* supplement* the* supply* of* vegetables,* fruits,* fish,* poultry* and* other* products.* It* is* reasonable* that* the* main* function* of* the* street* market* is* to* complement* the* availability* of* fresh* produce* on* a* weekly* basis* (Prefeitura* do* Rio* de* Janeiro,* 2015a).* All* personnel* working* in* the* street* market* must* get* authorization* from* the* City* Hall.* Figure&63*shows*a*typical*street*market*at*the*one*of*the*finest*neighbourhoods*in*the*city*of*Rio* de*Janeiro.* * Figure&63:&Street&Market&in&the&“Zona&Sul”&area& Photo*taken*by*M.*Paris*(2015)* ! 122! Besides*the*impersonal*supply*of*vegetables*in*the*supermarket,*consumers*are*used*to*getting* up* early* to* go* to* the* street* market.* As* Nagel* et* al.* (2007)* explain,* there* is* a* preferable* fresh* quality*of*the*produce*and*a*friendly*environment*in*community*cultural*relations.*According*to* Galliez* &* Schueler* (2004),* the* street* market* offers* a* great* opportunity* for* many* farmers* and* consumers*seeking*for*a*closer*relationship*regarding*their*products*and*foods.** Additionally,* the* “Circuito* Carioca* de* Feiras* Orgânicas”* is* a* street* market* circuit* intended* for* organic*products*started*in*2010*(David,*2014).*The*circuit*has*coverage*in*13*districts*of*the*city* Rio* de* Janeiro,* among* them,* Peixoto* (Copacabana),* Urca,* Ipanema,* Leblon,* Jardim* Botânico,* Tijuca,*Glória,*Freguesia,*Barra*da*Tijuca,*Olaria,*Botafogo,*Flamengo,*Laranjeiras*and*Leopoldina.* In* this* circuit,* the* producers* can* sell* directly,* without* intermediaries* and* at* fair* prices* to* consumers.*Producers*undergo*a*rigorous*evaluation*by*environmental*standards*(David,*2014).* 6.3. Step&3:&Institutional&Setup&of&value&chain&B& 6.3.1. Institutional&support&and&governance&in&the&Mountain&Region& A) Institutions:* According* to* data* collected* during* the* research,* producers* of* Nova* Friburgo* counts* with* the* presence*of*the*following*institutions:* ⋅ Municipal*Secretariat*of*Agriculture*and*Rural*Development*of*Nova*Friburgo* ⋅ EMATER;Rio*unit*Mountain*Region* ⋅ Brazilian*Agricultural*Research*Corporation*(EMBRAPA)* ⋅ PESAGRO;Rio* ⋅ Ministry*of*Agriculture,*Livestock*and*Food*Supply*(MAPA)* ⋅ Service*Micro*and*Small*Companies*of*the*State*of*Rio*de*Janeiro*(SEBRAE;RJ)* ⋅ State*Secretariat*of*Agriculture*and*Livestock*SEAPEC* ⋅ IBELGA*Institute*in*Nova*Friburgo*(Agricultural*Education)* B) Actions:* According*to*data*collected*during*this*research,*the*current*or*undertaken*institutional*support* in*Nova*Friburgo*can*be*listed*as*follow:* ⋅ PAA*and*PNAE:**Public*policy*for*commercialization*of*Family*Farming*from*the*Federal* government*through*the*direct*institutional*purchase*from*farmers* ⋅ ! PROAGRO*;*agricultural*insurance*against*losses* 123! ⋅ Pronaf:*credit*for*rural*and*non;rural*activities*of*family*farming* ⋅ State*programmes:*“Cultivar*Orgânico”,*“Frutificar”,*“Rio*Hort”,*“Florescer”*and* “Prosperar”* ⋅ Emergency*Plan*Rio*Rural*BIRD:*Strengthening*community*organizations,*emergency* support*to*return*to*productive*capacities,*local*market*support,*ecological*production* concepts* ⋅ Empraba*NPTA:*centre*for*producer*capacity*building*for*ecological*agricultural*practices* ⋅ DTE* project* ;* Territorial* Development* Endogenous:* the* commitment* of* people* and* cooperation*for*sustainable*and*organic*production.** C) Opportunities*for*market*expansion*(Private*Sector*Initiative)* The* Petrochemical* Complex* of* State* Rio* de* Janeiro* (Comperj)* is* one* of* the* largest* investment* projects* in* Brazil,* and* bet* to* increase* jobs* and* population* in* surrounding* areas.* Comperj* has* developed* the* Agenda* 21* in* the* municipalities* of* Rio* de* Janeiro,* located* near* the* complex* (Iniciativa*Agenda*21*Comperj,*2015a).**The*program*of*the*COMPERJ*gives*incentives*to*purchase* local* and* sustainably* produced* vegetables,* according* to* local* institutions* interviewed.* The* new* consumer* market* of* the* oil* refinery* company* is* an* opportunity* to* include* farmers* of* Nova* Friburgo.** D) Organic*Certification*;*Participatory*Guarantee*System*(SPG)* The*Brazilian*regulation*for*the*organic*farming*is*established*by*the*Decree*N°*6.323/07*and*it*is* credited* by* the* Ministry* of* Agriculture,* Livestock,* and* Supply* (MAPA)* denominated* Brazilian* System*for*Organic*Conformity*Assessment19*(SisOrg)*(MAPA,*2015d).*The*Participatory*Body*for* Assessment* of* Conformity 20 *(OPAC)* certifies* the* validation* of* the* organic* guarantee* using* a* Participatory*Guarantee*System21*(SPG),*regulated*by*participant*members*of*the*chain*system*–* farmers,*distributors,*carriers*and*other*collaborators*(MAPA,*2015d).*In*the*State*Rio*de*Janeiro,* the*Biological*Farmers*Association*of*the*State*of*Rio*de*Janeiro22*(Abio)*handles*the*certification* process* trough* SPG,* acting* as* OPAC* regulation* body* and* also* promotes* the* Carioca* Circuit* of* Organic*Farmer’s*Market*(Abio,*2015).* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 19 *“Sistema*Brasileiro*de*Avaliação*da*Conformidade*Orgânica”* *“Organismo*Participativo*de*Avaliação*da*Conformidade”* 21 *“Sistema*Participativo*de*Garantia”* 22 *“Associação*de*Agricultores*Biológicos*do*Estado*do*Rio*de*Janeiro”! 20 ! 124! 6.3.2. Governance&Satisfaction&of&farmers& The* overall* satisfaction* of* the* farmers’* respondents* regarding* the* institutional* support* is* displayed*in*Figure&64.** 47%& 23%& 17%& 7%& Very&good& Good& Fair& 7%& Bad& no&response&or&no& opinion& Figure&64:&Governance&satisfaction&of&respondent&farmers&value&chain&B& ! In* general,* farmers* are* satisfied* with* the* available* institutional* help.* 70%* of* them* said* the* actuation* of* the* institutions* is* "very* good"* or* "good".* Farmers* reported* that* after* the* disaster* happened*in*2011,*there*have*been*offered*support*from*Rio*Rural*Program.*PRR*assisted*in*the* recovery* of* roads* and* facilitated* the* sale* of* the* produce,* and* also* it* was* provided* by* the* MDA* easy*access*to*the*Pronaf,*and*better*assistance*from*Emater*and*Embrapa.*Few*farmers*said*24%* the* support* was* fair* or* bad.* The* complaints* were* related* to* the* little* action* and* assistance* of* Emater,*the*need*for*greater*participation*of*Embrapa.*Also,*they*complained*about*the*difficulty* of* getting* the* DAP* to* participate* in* government* programs,* and* discrimination* suffered* in* at* funding*institutions,*such*as*banks.* 6.3.3. Farmer&Organizational&Structure& Besides* the* COGEM,* which* actuates* in* both* micro;basins* embracing* all* community,* it* was* encountered*seven*different*types*of*farmer*associations.*They*are*all*listed*in*Table&47,*together* with*the*perception*of*farmer’s*regarding*the*role*of*his/her*association.* * ! 125! Table&47:&Farmer’s&Associations&in&the&Value&Chain&B& Association& Farmer's&perception&of&the&role&of&the&Association& ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ Lethargy*2007;2013* Currently*several*projects* Conflict*of*opinion*between*members* Labour*and*social*rights*for*farmers* Solution*of*problems* Favours*the*performance*of*EMBRAPA*and*SEBRAE* Brings*benefits*to*society* Favours*obtaining*resources* Favours*requests*from*producers* Benefits*depends*on*the*Association* Problem*of*disagreement* Association&of&Barracão&dos& Mendes& ⋅ ⋅ Documents,*doubts,*agricultural*machines** Need*better*organization** Salinas&small&farmer's& Association&(MB3)& ⋅ ⋅ ⋅ ⋅ ⋅ Project*of*micro;basin*(Rural*Rio):*sustainability,*infrastructure,*transport* Documentation,*retirement,*participation*in*programs* Problem:*it*does*not*have*much*power* Favours*the*assistance*of*technicians,*funds* Problem*of*disagreement* Santa&Cruz&small&farmer's& Association&(MB3)& ⋅ ⋅ ⋅ PAA,*Rural*Rio,*other*programs* Community*benefits* Problem:*Association*expense* ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ ⋅ Rights*to*the*farmer,*aid*motherhood* Discord*problem* Greatly*helps*the*producer* Projects* Lack*of*organization* Product*quality* Marketing*viability* Organizational*conflicts* Exchange*of*experience*on*organic*farming* Lack*of*unity* Rio&Grande&small&farmer's& Association&(MB4)& Florândia&da&Serra& Association&(MB4)& Serra&Nova&and&Serra&Velha& small&farmer's&Association& (MB4)& SPG&System&C&Biological& Farmers&Association&of&Rio& de&Janeiro&State&(ABIO)&–& Organic&producers& It*is*noted*that*the*farmer*recognizes*the*importance*of*the*association*for*the*community,*which* acts*as*an*organizational*unit*for*implementation*of*projects*and*programmes*of*government*and* institutions.*Also*being*part*of*the*association*helps*to*be*more*aware*of*the*available*benefits*for* the*farmer,*whether*farmer’s*rights,*or*funds,*resources,*technical*capacity,*and*improvement*of* infrastructure.* However,* the* organization* still* faces* problems* of* unification* and* disagreement* among*the*associates,*due*to*different*opinions.* ! 126! 6.4. Step&4:&Input&and&output&markets&in&value&chain&B& 6.4.1. Supply&and&prices&at&the&wholesale&market& A*serial*publication*of*fresh*produce*commercialization*in*the*wholesale*in*Rio*de*Janeiro*(SIMA*&* PESAGRO;RIO,* 2002)* was* acquired* during* the* expert’s* consultation* research.* According* to* the* serial,*the*supply*of*the*studied*products*follows*a*pattern*of*"weak",*"regular"*or*"strong"*supply* along*the*year*(Table&48).*Weak*supply*means*the*quantity*available*in*the*market*is*lower*than* the*demand.*Regular*supply*means*the*quantity*supplied*and*quantity*demanded*are*much*alike.* Strong*supply*means*the*market*quantity*of*supply*is*much*higher*than*the*demanded.*No*data* regarding*Chinese*cabbage*was*found*in*the*serial.** Table&48:&Supply&along&the&year&of&the&studied&vegetables&at&the&CEASA&wholesale& Vegetable& Lettuce* Cauliflower* Parsley* Tomato* Beetroot* Green*bean* Chinese*cabbage* Jan.& * * * * * * Feb.& * * * * * * Mar.& * * * * * * Apr.& * * * * * * May& * * * * * * Jun.& Jul.& Aug.& * * * * * * * * * * * * * * * * * * No*data*found* Sep.& * * * * * * Oct.& * * * * * * Nov.& * * * * * * Dec.& * * * * * * Legend:*weak*regular,strong* Source*of*data:*(SIMA*&*PESAGRO;RIO,*2002)* The*prices*are*consequently*self;regulated*by*the*supply*and*demand*relations.*Table&49*reflects* the* drop* in* prices* or* elevation* of* the* prices* by* each* of* the* studied* produce,* except* Chinese* cabbage*(SIMA*&*PESAGRO;RIO,*2002).*If*the*supply*is*higher*than*the*demand,*the*prices*tend*to* drop*according*to*quotations.*If*the*attendance*in*the*market*is*satisfactory,*prices*get*stabilized.* However,*if*the*supply*does*not*attend*the*demand,*the*prices*tend*to*rise.** Table&49:&Prices&tendency&of&the&studied&vegetables&along&the&year&at&the&CEASA&wholesale& Vegetable& Lettuce* Cauliflower* Parsley* Tomato* Beetroot* Green*bean* Chinese*cabbage* Jan.& * * * * * * Feb.& * * * * * * Mar.& * * * * * * Apr.& * * * * * * May& * * * * * * Jun.& Jul.& Aug.& * * * * * * * * * * * * * * * * * * No*data*found* Sep.& * * * * * * Oct.& * * * * * * Nov.& * * * * * * Dec.& * * * * * * Legend:*low*prices,*stable*prices,*elevated*prices* Source*of*data:*(SIMA*&*PESAGRO;RIO,*2002)* ! 127! This*self;regulation*pattern*followed*along*the*year*constitutes*an*important*market*price*“guide”* for*all*produce*transactions*for*producers*and*traders*(SIMA*&*PESAGRO;RIO,*2002).* 6.4.2. Degree&of&competitiveness&in&the&vegetable&market& According*to*Corrêa*(1985)23,*the*commercialization*chain*of*vegetable*products*in*the*state*Rio* de* Janeiro* is* characterized* by* a* dynamic* of* “dispersion) –) concentration) –) dispersion”.* As* Lima* (2010)* states,* this* type* of* centralized* organization* for* the* commercialization* of* vegetables* created*in*the*70’s*–*with*the*units*of*CEASA*in*Irajá,*São*Gonçalo,*and*the*units*of*Farmer*Market* in*the*Mountain*Region*–*was*fundamental*for*the*initial*growth*of*the*Fluminense’s*horticulture.** However,* the* effect* of* “dispersion* –* concentration* –* dispersion”,* together* with* the* rapid* perishability*of*the*produce*creates*an*important*role*on*prices*formation.*The*CEASA;RJ*works*as* if* it* was* a* stock* market* for* producers* and* buyers* (Seabra* &* Marafon,* n.d.).* Leonardo* Brandão,* president*of*CEASA;RJ,*said*in*an*interview*(Ortiz,*2011a)*that*the*CEASA*has*a*collection*of*daily* prices* used* as* a* reference* basis.* Since* the* prices* are* not* regulated* or* fixed,* they* are* self; regulated*by*the*wholesale*market*environment.* According*to*data*collected*during*this*research,*problems*with*price*regulation*are*so*extreme,* that*it*ends*up*in*a*very*high*waste*of*still*edible*products.*The*prices*vary*widely*throughout*the* commercialization* time,* and* the* competition* is* very* high.* This* “stock* market”* environment,* created*due*to*the*concentration*of*goods*and*high*competition,*makes*traders*and*farmers*deal* with*ultimate*decisions*to*avoid*the*loss*of*business.*Traders*dismiss*their*goods*directly*into*the* bin*to*avoid*a*surplus*in*the*market*supply*and*prices*drop.* As*a*matter*of*fact,*Horticulture*has*an*economical*importance*in*the*domestic*market*and*is*a* very* important* component* of* the* Brazilian* diet.* However,* it* is* subjected* to* a* degree* of* competitiveness* called* “Perfect& competition”* via* the* CEASA* supply* and* distribution* system.* According* to* Bellù* 2013,* the* perfect* competition* happens* when* there* is* high* concentration* of* buyers* and* sellers* trading* small* quantities* of* products,* having* NO* power* in* setting* the* price* of* the*good*or*service*traded.*The*quantities*of*supply*and*demand*dictate*the*price*formation.*In* this*scenario,*there*is*almost*homogeneity*of*the*product,*which*in*this*study*is*the*produce*with* almost*or*no*differentiation*of*the*product.*That*is*why*the*awareness*to*the*basics*of*produce* conservation* of* quality* and* safety,* such* as* refrigeration* and* appropriate* boxes* for* moving* the* goods*lacks*behind.* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 23 ! Cited IN Seabra & Marafon (n.d.) 128! However,* due* to* the* increase* in* the* retail* sector,* the* competitiveness* tends* to* shift* slightly* towards* near* to* oligopoly* or* few* sellers.* There* are* few* powerful* retailer* chains,* such* as* supermarkets*and*“Hortifrutis”,*which*might*contribute*to*a*stabilization*of*the*price,*controlled* by* them* at* a* higher* stage.* The* competition* of* the* retailers* also* enhances* the* quality* of* the* produce* and* offers* a* higher* product* diversification* by* current* consumer* needs,* such* a* greater* convenience,*and*differentiated*products,*as*previously*cited.** 6.4.3. Horticulture&marketplace& 6.4.3.1. Commercialization&channel& Figure&65*represents*the*commercialization*channel*of*the*farmer*respondents*in*the*Value*Chain* Horticulture.** Federal&Programmes& 8%& other&(direct&selling& or&restaurant)& 5%& hornfrun&chain& 5%& street&market& 8%& CEASA& 12%& "middlemen"& 62%& Figure&65:&Commercialization&channel&of&the&interviewed&farmers&value&chain&B& * The* majority* of* the* farmers* (62%)* commercialize* their* produce* through* the* “middlemen”.* This* fact*is*a*reality*faced*in*the*study*area*due*to*problems*of*logistics*and*difficult*opportunity*for* farmers*to*sell*directly*in*the*CEASA;Rio.*Farmers*say*they*face*a*difficult*trade;off*to*consider*on* their* decisions.* Whether* stay* and* produce* (considering* the* scarce* available* labour)* or* to* leave* the*farm*and*go*to*the*wholesale*at*the*capital*operating*high*costs*and*reduced*production*on* the*land.*Nevertheless,*some*farmers*practice*the*commercialization*directly*via*CEASA*(12%)*in* the*Pavilion*21.*In*this*sense,*the*role*of*the*middlemen*is*essential*as*an*active*agent*especially* on* the* produce* collection* and* further* redistribution* to* the* wholesale* center.* Without* the* intermediary,*the*burden*of*commercialization*would*be*total*upon*the*farmer.*The*middlemen* ! 129! are* also* subjected* to* the* self;regulating* price* environment,* in* which* the* burden* comes* to* the* farmers,*considering*that*the*trader*will*earn*on*the*top*of*the*traded*price.* Interesting*to*observe*is*the*participation*of*farmers*in*Federal*Programmes,*i.e.*PNAE*(National* School* Feeding* Programme)* and* PAA* (Food* Purchase* Programme)* through* the* institutional* purchase.* Although* it* represents* only* 8%* of* the* respondents,* it* is* quite* considerable.* This* fact* highlights*the*importance*of*the*governmental*programmes*in*regulating*the*market.*Some*piece* of*the*pie*is*driven*to*the*institutional*purchase,*designed*to*meet*the*family*farming*and*food* security*targets,*thus*paying*more*fair*prices*for*the*farmers.*The*difficulty*to*take*participation*in* the* PAA* and* PNAE* is* due* the* requirements.* It* is* required* a* CNPJ* (document* of* the* enterprise),* invoice* notes,* and* DAP* (Declaration* of* Aptitude* to* the* Pronaf),* that* in* some* cases* is* not* acquirable,*i.e.*sharecropper’s*conditions.*Another*point*reported*by*the*manager*at*the*CEASA* Grande;Rio*is*that*the*PAA*and*PNAE,*the*payment*is*not*instantly,*there*is*a*payment*deadline*at* the*end*of*the*month.*That*is*the*reason*some*farmers*prefer*to*sell*to*the*wholesale*whenever* they*decide,*or*through*the*middlemen,*because*the*payment*is*instantly*and*normally*in*cash.** The*street*market*commercialization*channel*was*mostly*common*among*the*organic*producers.* The*biological*farmers*commercialize*their*produce*directly*in*the*organic*street*market*through* the*Carioca*Circuit*for*Street*Market*(“Circuito*Carioca*de*Feiras*Orgânicas”).*Likewise,*there*is*in* Nova*Friburgo*an*organic*street*market*at*the*“Suspiro”*Square.* 6.4.3.2. Price&flow& The*average*sale*price*at*the*production*level*is*in*Table&50.*Farmers*reported*the*minimum*and* the*maximum*sale*price*at*that*year*(2013),*just*to*visualize*the*price*fluctuation*over*the*period* of* research.* The* more* volatile* prices* are* for* tomato,* green* bean* and* beetroot,* normally* commercialized*in*boxes*at*the*wholesale*market,*called*“caixaria”*products.*The*volatilization*is* lesser*in*the*trade*of*leaf*vegetables,*showing*little*variation.* Table&50:&Sale&price&at&the&producer&level& Produce& Unit& Min& Max& Mean& Variation& * Price&/kg& * Conventional&Producer& Tomato& Box*20kg* R$17.86* R$54.31* R$36.09* 67%* *R$1.80** Cauliflower& Unit*head* R$0.90* R$1.49* R$1.20* 39%* *R$0.60** Green&bean& Box*15*kg* R$12.14* R$33.27* R$22.70* 64%* *R$1.41** Lettuce& Dozen* R$3.57* R$6.36* R$4.97* 44%* *R$0.83** Chinese&Cabbage& Unit*head* R$0.55* R$0.55* R$0.55* 0%* *R$0.22** Parsley& Bunch* R$0.34* R$0.61* R$0.48* 44%* *R$0.96** Beetroot& Box*20*kg* R$9.94* R$23.83* R$16.89* 58%* *R$0.84** ! 130! Organic&producer& * * * * * * Tomato& Kg* R$10.00* R$12.00* R$11.00* 17%* *R$2.00** Cauliflower& Unit*head* R$3.50* R$4.00* R$3.75* 13%* *R$1.00** Green&bean& Package*300g* R$3.25* R$5.25* R$4.25* 38%* *R$6.67** Lettuce& Bunch* R$1.75* R$1.75* R$1.75* 0%* *R$10.50** Chinese&Cabbage& Unit*head* ;* ;* ;* ;* *;** Parsley& Bunch* R$2.00* R$2.00* R$2.00* 0%* *R$4.00** Beetroot& Bunch* R$3.00* R$3.75* R$3.38* 20%* *R$6.75** It* is* noted* a* more* stabilization* of* sale's* prices* of* the* organic* producer,* presenting* almost* no* fluctuation.* The* reason* is* the* type* of* commercialization* channel* they* use* through* the* organic* street* market,* or* so* to* say* direct* sale* to* the* consumer,* without* intermediates.* In* the* case* of* conventional* producers,* they* suffer* from* the* self;regulating* market,* having* to* pass* through* middlemen*then*the*concentration*in*the*wholesale*market.*The*win*or*lose*product*is*tomato,* considering*the*amount*produced*and*its*importance*in*the*domestic*market.*It*can*either*make* the*producer*rich*or*can*bring*him*to*liquidation,*depending*on*the*set*price*at*the*market,*which* the*control*is*not*upon*any*of*the*involved*agents*of*the*chain.* The* average* sale* price* (R$/kg)* at* the* wholesale* market,* at* the* retailer* sector* and* processing* plants*are*displayed*in*Table&51.*The*Ceasa*unit*in*Nova*Friburgo,*called*“Mercado*do*Produtor”* only*trades*boxed*vegetables*(“caixaria”)*from*the*studied*vegetables.*The*mini;processing*plants* focus*on*leaf*vegetables,*from*the*studied*products.* Table&51:&Sale&Price&(R$/kg)&per&produce&of&upstream&agents&value&chain&B& Produce& Ceasa& Grande& Rio& Ceasa&“Mercado& do&Produtor”& Nova&Fribrugo& COOPFEIRA& wholesaler& TuttiCfrutti& (MiniC processed& and&retail)& Vale&Verde& (MiniCprocessed/& redistribution)& Street& Market& (other)& Tomato& R$2.15* R$2.20* R$1.71* ;* ;* R$6.00* Cauliflower& R$1.19* R$1.15* R$3.14* R$19.90* R$3.33* R$1.50* Green&bean& R$2.72* R$2.17* R$2.69* ;* ;* R$10.00* Lettuce& R$1.68* ;* R$1.79* R$19.90* R$7.50* R$3.00* Chinese&Cabbage& R$1.82* ;* R$2.00* R$1.99* R$6.67* R$3.00* Parsley& R$3.19* ;* R$2.75* R$19.90* ;* R$4.00* Beetroot& R$1.22* R$0.75* R$1.38* ;* ;* R$6.00* Table* elaborated* by* the* author* based* on* questionnaires,* CEASA’s* expert’s* consultation,* and* price* collection* in* the* 24 street*market ** * !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 24 *It*was*just*collected*the*sale*price*by*a*third*person*(Paris,*M.).*There*weren’t*any*interview*or*questionnaires*in*the* street*market,*but*prices*were*worth*for*comparison.* ! 131! The* Producer* Market* in* Nova* Friburgo* (“Mercado* do* Produtor”* CEASA)* seems* to* be* currently* stopped;*almost*no*producer*trades*goods*there.*Its*function*now*is*being*a*center*of*purchase*of* agricultural* inputs* at* large* enterprises.* Its* purpose* is* not* anymore* a* center* for* collecting* and* distributing*goods.*At*the*time*of*data*collection,*there*were*three*buyers,*trading*less*perishable* vegetables,*such*as*tomato,*green*bean*and*beet*(“caixaria”*vegetables)*and*cauliflower,*but*no* leaf*vegetables25.*The*circumstance*of*few*buyers*in*the*market*scares*producers*to*trade*there,* so*they*prefer*to*give*the*produce*to*the*middleman,*which*is*safer.* Figure&66*gives*an*insight*regarding*the*collected*sale*prices*throughout*the*value*chain*B.*It*can* be*clearly*observed*the*entanglement*of*prices*in*the*agents*operating*at*the*CEASA*system.*The* conventional*producer*is*the*weaker*side*of*the*chain,*due*to*the*competitiveness*in*the*market.** Street&Market& Vale&Verde& TuÄfrun&& COOPFEIRA&& Ceasa&Mercado&Produtor&Nova&Fribrugo& Ceasa&GrandeCRio& Organic&Producer& Convennonal&Producer& beetroot& parsley& &$0.50&& &$5.50&& Chinese&Cabbage& LeÅuce& &$10.50&& &$15.50&& Green&bean& Cauliflower& &$20.50&& Tomato& Figure&66:&Sale&price&distribution&among&Value&chain&B&agents&for&the&studied&vegetables& The* producer* sale* prices* are* “squeezed”* by* the* high* competitiveness* of* the* wholesale* system.* Additionally,*it*is*possible*to*infer*that*the*mini;processing*activity*can*add*much*more*value*to* the*sale*when*comparing*price*per*kilogram.*The*chain*Tutti;frutti*and*the*company*“Vale*Verde”,* !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 25!Detail:*the*prices*were*collected*by*the*market*management,*indicating*the*lack*of*trade*in*other*products*studied! 132! ! for*example,*supply*for*supermarket*chains,*and*sell*at*much*higher*prices.*Furthermore,*it*can*be* said*that*the*lesser*intermediates*in*the*chain,*the*greater*the*sale*price*for*producers.*Likewise,* organic*producers*and*the*street*market*in*the*neighborhood*“Ipanema”*in*the*city*Rio*de*Janeiro* had*a*comparatively*higher*sale*prices*in*relation*to*the*conventional*farmer.** Finally,*it*is*important*to*rethink*the*supply*and*distribution*system*through*the*CEASAs,*which*is* restricting*the*local*agricultural*economy*and*is*either*contributing*to*a*sustainable*development.* One* of* the* ways* in* terms* of* decision;making* is* to* reinforce* the* already* existent* pro;family* farming* programs* to* alleviate* the* commercialization* constraints,* and* additionally* focus* on* the* real*upgrading*process*of*the*value*chain.*Some*examples*are*the*provision*of*better*education* and*qualification,*better*logistics*system,*and*incentives*for*agro;processing*activities*within*the* communities.*Since*there*are*few*mini;processing*plants*in*the*region,*the*inclusion*of*farmers*in* this*market*niche*would*position*them*in*a*better*place*in*the*value*chain*and*improve*the*overall* quality* and* competitiveness* in* the* sector.* The* simple* action* of* mini;processing,* e.g.* selecting,* washing,* sanitizing,* chopping,* and* packing,* as* in* Figure& 67,* can* add* up* to* 95%* value* to* the* product.* Moreover,* farmers* should* also* decide* to* produce* ecological* and* healthier* foods.* It* means*that*if*they*opt*for*an*agroecological,*permaculture*or*organic*production,*they*would*also* be*better*off,*in*social,*environmental*and*economically*terms*so*to*say.* * Figure&67:&Mini&processed&cauliflower&from&Vale&Verde& Photo*taken*by*the*author*2014* ! 133! 6.5. Step&5:&Functional&analysis&of&value&chain&B&C&horticulture& The* dynamic* of* the* distribution* of* vegetables* in* Brazil* follows* two* different* pathways,* as* suggested*by*Lourenzani*&*Silva*(2004)*in*Figure&68.*The*same*authors*explain*that*the*channel*A* relates* to* the* distribution* through* the* large* retail* shopping* centers,* such* as* supermarkets.* In* channel* A,* producers* usually* have* a* high* technological* standard,* trade* their* produce* to* specialized*wholesalers.*The*specialized*distributor*adds*value*to*the*produce*and*offers*regular* supply*to*the*shopping*centers*and*their*shop*branches,*which*sell*to*the*consumer.*The*channel* B*is*the*way*used*by*the*commercialization*through*the*CEASAs,*normally*composed*of*farmers* with*high*or*low*technological*pattern,*which*trade*through*the*CEASAs.*The*CEASAs*distribute*to* small*and*medium*retailers,*to*reach*consumers,*according*to*Lourenzani*&*Silva*(2004).* & Figure&68:&Involved&agents&in&the&distribution&of&vegetables&(except&leaf&vegetables)&in&the&different& commercialization&channels&A&and&B.& Figure*extracted*from*(Lourenzani*&*Silva,*2004)* 6.5.1. Setting&the&boundaries&of&Value&Chain&B& In*this*study,*it*is*explored*the*three*main*commercialization*channels,*already*cited,*including*the* channels*via*CEASA,*via*retailers*shopping*centers,*and*the*direct*sale*to*the*consumer.*Figure&69* illustrates* the* set* boundaries* involving* the* Value* Chain* B.* It* was* set* two* boundaries.* One* boundary* represents* the* consumer* boundary* found* in* this* research,* involving* all* options* of* purchase* available,* and* interactions* among* the* agents.* The* other* boundary* set* represents* the* research* scope* boundary,* indicating* which* agents* of* the* chain* reached* during* the* research.* ! 134! Organic*producers,*although*not*being*the*focus*of*this*research,*are*worth*for*comparison*with* the* conventional.* It* is* important* to* consider* that* the* aim* of* this* research* is* not* to* analyse* the* whole* organic* chain,* which* comprises* much* more* distribution* chains* than* here* presented.* However,* in* general,* the* organic* market* has* fewer* intermediaries* than* the* conventional* production.* * Figure&69:&Set&Boundary&of&Value&Chain&B&–&Horticulture& Chart*elaborated*using*fieldwork*data* In*Figure& 69,* besides* the* set* boundaries,* it* can* be* observed* the* interactions* among* agents* and* the*different*types*of*vegetables.*The*blue*arrows*show*the*connections*of*the*fruit*vegetables* and*the*distribution*channels.*Fruits*vegetables*are*traded*through*the*middlemen,*through*the* CEASAs* and* small* wholesalers,* or* direct* to* large* retailers,* specialized* retailers,* and* also* via* institutional*purchase.*It*seems*fruit*vegetables*follow*the*same*pattern*described*by*Lourenzani* &*Silva*(2004).** The* red* arrows* are* representing* connections* of* the* leaf* vegetables* and* their* distribution* channels.* Leaf* vegetables* are* also* traded* through* middlemen* and* institutional* purchase.* ! 135! However,*in*this*research,*there*wasn’t*found*a*connection*with*the*channel*B*(as*suggested*by* Lourenzani* &* Silva,* 2004)* via* the* CEASAs.* It* seems* the* leaf* vegetables* follow* another* way* of* commercialization.*The*commercialization*channel*includes*the*direct*sale*to*the*consumer,*e.g.* restaurants,* hotels* and* hospitals;* the* direct* sale* to* the* consumer* in* street* markets;* and* direct* sale*to*retailers,*namely*small*retailers*and*specialized*retailers.** This* circumstance* is* due* the* rapid* perishability* of* the* leaf* vegetables,* which* needs* rapid* consumption.*The*fruit*vegetables,*on*the*other*hand,*have*comparatively*higher*durability*and* thus*can*be*traded*in*a*more*complex*distribution*system.* 6.5.2. Identification&of&activities&and&technical&analsys& The*term*of*Olericulture*comes*from*Latin*olus*(=vegetables)*and*colere*(=cultivate),*which*means* the* cultivation* of* certain* herbaceous* plants* of* short* cycle* for* human* consumption,* normally* denominated* as* vegetables* and* greens* (Bevilacqua,* 2008).* The* term* Horticulture,* according* to* the*same*author*embraces*the*olericulture*and*additionally*includes*other*production*crops*such* as* fruit,* mushrooms,* ornamental* plants,* medicinal* plants,* herbs,* flowers* and* bulbs,* and* also* seedlings.*Horticulture*is*a*seasonal*crop*characterized*by*short*cycle,*usually*inferior*to*one*year,* and* harvested* at* once,* because* harvest* undoes* the* whole* crop* (IBGE,* 2009).* The* overall* crop* characteristics*of*the*studied*vegetables*are*described*as*follow.* A)*Lettuce:** According*to*Caetano*et*al.*(2001),*Rio*de*Janeiro's*consumer*market*has*a*preference*for*smooth* (“Lisa”)*lettuce*and*iceberg*lettuce*for*fast*food*chains.*Other*varieties*include*"smooth*cabbage* lettuce",* "curly* cabbage* lettuce”,* “curly* lettuce”* and* Roman* type* lettuce.* Lettuce* can* be* produced*during*the*whole*year*within*favorable*weather*conditions,*avoiding*large*heat*stroke* and* heavy* rains* in* the* summer* periods.* It* has* been* recommended* the* protected* cultivation* in* greenhouses* with* pesticide* reduction* to* improve* productivity* and* product* quality.* It* is* also* widely* practiced* hydroponics;* wherein* the* cultivation* is* performed* on* a* nutrient* solution* required* for* plant* growth.* This* type* of* farming* is* also* advantageous* in* terms* of* avoiding* pests* that*are*normally*contracted*in*the*soil*(Caetano*et*al.,*2001).* B)*Tomato:)) Silva*et*al.,*2003*say*that*the*tomato*production*is*very*challenging,*because*the*investments*are* high,* especially* the* excessive* use* of* pesticides.* The* production* can* be* focused* on* the* fresh* ! 136! consumption* or* the* industrialization* of* sauces* and* purees.* There* are* producers* who* adopt* techniques* such* as* integrated* pest* management* and* the* greenhouse* system,* preventing* that* large*amounts*of*pesticides*applied.*The*Fluminense’s*producer*has*to*keep*an*eye*on*the*area*of* cultivation* in* slopes;* the* cropping* system* (protected,* traditional* or* creeping);* the* fertilization* (organic*or*mineral);*and*the*control*of*pests*and*weeds*(Silva*et*al.,*2003).) C)*Beetroot:** Beetroot*is*one*of*the*plants*propagated*by*seed,*planted*seed*or*transplant*trays*for*later.*There* are* three* types* of* commercially* produced* beet,* sugar,* for* the* extraction* of* sugar,* forage,* feed,* and*vegetable*or*red*beet*for*human*feeding.*The*culture*of*beet*must*undergo*an*intense*cold* period,*and*should*be*avoided*high*temperatures*and*intense*rainfall*(Tivelli*et*al.,*2011).* E) Parsley:** Parsley*can*be*produced*in*open*spaces*during*the*whole*year*by*planting*in*beds.*It*can*also*be* produced*inside*protected*tunnel*of*galvanized*steel*arches*and*plastic*cover,*to*protect*against* heavy* rain* or* severe* winter.* Are* grown* salsas* of* the* Portuguese* type* and* flat;leaf* parsley* (SEBRAE,*2011).* E)*Cauliflower:** The* cultivars* are* sorted* by* ideal* time* for* sowing,* including* crops* of* winter,* mid;season,* and* summer* (May* et* al.,* 2007).* This* classification* considers* the* chilling* requirements* for* floral* induction.* Winter* cultivars* develop* and* produce* "heads"* at* temperatures* ranging* from* 14* to* 20°C.* Above* this* range,* the* plants* continue* the* vegetative* growth* forming* semi;vegetative* "heads"*with*a*greenish*color.*The*summer*crops*cannot*be*grown*under*conditions*below*20°C,* as*this*may*lead*to*an*early*formation*of*inflorescence,*with*a*small*size*and*no*commercial*value.* Cultivation* is* done* by* seed* propagation* and* subsequent* transplant* of* seedlings* to* the* area* of* cultivation*(May*et*al.,*2007).* F)*Green*Bean:** The*green*beans*can*be*obtained*from*the*same*cultivar*of*a*regular*bean.*There*are*two*types*of* pods,* following* different* growth* type.* One* is* the* pod* with* determinate* growth* (bushes),* which* has* a* shorter* cycle,* and* is* more* suitable* for* mechanized* harvesting.* And* the* second* is* the* pod* with* indeterminate* growth* (climbing* plants)* in* succession* with* tomato* and* cucumber* (UENF,* 2015).*There*are*several*commercial*types*of*green*beans,*the*“macarrão”*pod,*the*“manteiga”* pod*and*the*“slim*trepador”*(UENF,*2015).* ! 137! G)*Chinese*cabbage:** The* Chinese* cabbage* is* erroneously* called* chard.* The* real* Chinese* cabbage* has* leaves* of* bright* green* color,* oblong* clenched,* wavy* on* the* margins,* hairy,* with* fleshy,* thick* midrib* white* color* (Seabra* Júnior* et* al.,* 2014).* The* passage* of* vegetative* stage* to* reproductive* is* induced* by* low* temperatures,*being*inhibited*by*its*flowering*at*a*high*temperature*(Bernier*&*Périlleux,*2005).* There* has* been* an* improvement* of* the* commercial* production* systems.* However,* yet* much* remains*to*be*researched,*not*only*to*achieve*self;sufficiency*in*relation*to*production,*but*also*in* relation*to*obtaining*higher*quality*seeds*(Lopes*&*Macedo,*2008).** Bevilacqua* (2008)* has* three* classifications* of* vegetables.* The* first* is* the* group* of* tuberous* vegetables,*which*usable*parts*are*the*ones*inside*the*soil,*e.g.*potatoes,*bulbs,*roots.*The*second* group*is*of*herbaceous*vegetables,*which*the*usable*part*is*over*the*soil,*e.g.*lettuce,*cauliflower,* cabbages.*The*last*group*is*the*fruit*vegetables,*which*the*fruit*is*the*usable*part,*e.g.*tomatoes,* melons,* pods.* Table& 52* displays* he* overall* characteristics* of* the* studied* vegetables* in* this* research.* Table&52:&Characteristics&of&the&studied&vegetables& Illustration& Scientific&Name& Classification& Crop&(Southeast& Brazil)& Duration&of&the& cycle& Commercial& form&(usual)& “Chard” Chinese* cabbage* Brassica) pekinensis) (Lou.).) Leaf* Whole*year* 60;70*days* Bunch,*or*Box* 20kg;8*heads* Lettuce* Lactuca)sativa) L.) Leaf* Winter* (Feb./Jul.)* Summer*(Whole* year)* 60;80*days* (winter)* 50;70*days* (summer)* Beetroot* Beta)vulgaris)L.) Root* Whole*year* 60;70*days* Cauliflower* Brassica) oleracea)var.) botritys) Flower* Winter* (Feb./Apr.)* Summer* (Oct./Feb.)* 100*;110*days* (winter)* 90;100*days* (Summer)* Unit*–*head,*Box* 16kg*–*8*heads* Green*bean/* snap*bean/* string*bean* Phaseolus) vulgaris)L.) Fruit** Aug./mar.* 60;70*days* Box*–15*kg,*or* disposable*tray* 0.5kg*or*in*bulk* Tomato* Lycopersicon) esculentum)Mill) Fruit** Whole*year* 100;120*days* Box*–*20kg*or* disposable*tray* 0.5kg,*or*in*bulk* Parsley* Petroselinum) crispum)(Mill.)) Nym.) Herb* Mar./Set.* 60;70*days* Bunch* Popular&Name& 1* * * * * * * * Box*6kg*–*18* units,*or* individually* packed* Boxes*–*20*kg*or* packed,*or*in* bunch,*or*in* bulk* Source:*Table*elaborated*by*the*author*using*data*and*pictures*from*(Embrapa;Hortaliças*&*SEBRAE,*2010)*and*(CEASA; 1 RJ,*2015b).* Note:*The*Chinese*cabbage*is*erroneously*called*by*the*name*of*“chard”*both*into*the*production*and*the* commercialization* field,* however* they* are* technically* different* species,* the* chard* which* is* referred* in* this* study* is* actually*the*Chinese*cabbage,*in*technical*terms.* ! 138! The* respondent* farmers* in* this* research* could* be* classified* into* three* categories* regarding* the* type*of*chosen*crop,*being*them*"seasonal",*"whole*year"*of*"both"*crops.*Figure& 70*represents* the*results.*Half*of*the*farmers*opt*to*produce*only*season*crops*like*the*green*bean,*cauliflower,* and*parsley.*Some*summer*varieties*of*vegetables*are*cropped*during*the*whole*year,*such*as*the* case*of*lettuce.*17%*of*the*farmers*crop*whole*year*crops,*e.g.*tomatoes,*beetroot*and*Chinese* cabbage.*One;third*of*the*interviewed*opts*to*crop*both*seasonal*and*whole*year*crops.**This*sort* of*decision*is*an*issue*when*considering*lose*or*win*situations*regarding*crop*losses.*The*farmer* who*produces*whole*year*crops*has*much*more*resilience*in*case*of*a*natural*disaster,*which*can* ruin* the* whole* crop.* As* much* as* diversified* the* type* of* crop,* the* better* the* adaptation* due* to* environmental*changes.* ! Figure&70:&Categories&of&Farmers&according&to&the&crop&type& H)*Organic*production* According* to* EMBRAPA* (2005),* the* organic* production* is* sufficient* for* the* cultivation* of* herbaceous* vegetables,* fruit* vegetables,* and* tuberous* vegetables.* In* addition* to* high* productivity,* it* has* obtained* good* quality* products* to* meet* the* demand* of* the* consumer.* Two* practices*are*critical*to*maintaining*the*productive*capacity:*organic*manure*and*green*manure.* Regarding*the*phytosanitary*aspect,*there*is*an*appreciation*of*the*use*of*plants*that*provide*vital* resources* for* natural* enemies* of* pests,* as* well* as,* adopting* measures* for* full* expression* of* the* natural*mechanisms*of*plant*defense.*Also*,*it*is*practiced*the*use*of*alternative*pesticides,**such* as*homemade*juices*(bordeaux*mixture),*biocontrol*agents*and*plant*extracts*(EMBRAPA,*2005).* 6.5.2.2. PostCharvest&losses& One*important*technical*point*of*consideration*is*the*post;harvest*losses,*which*is*certainly*one* bottleneck* to* overcome.* Although* the* vegetable* diversity* in* Brazil* is* plentiful,* its* commercialization* is* limited* due* to* high* perishability,* handling* conditions,* and* environmental* conditions,* which* accelerate* the* ripening.* The* logistics* are* also* a* matter,* which* jeopardizes* the* commercialization*due*to*elevated*costs*(Censi,*2006).*Specifically*in*Brazil,*the*average*levels*of* ! 139! post;harvest*losses*reach*35%*up*to*40%,*while*in*other*countries,*like*the*United*States*are*only* 10%*(Vilela*et*al.,*2003).* The*post;harvest*losses*might*happen*in*every*point*of*commercialization*of*the*chain,*starting*in* the*harvest*and*ending*up*in*the*consumption*(Censi,*2006).*The*FAO*(2011)*states*the*segments* where*food*losses*are*estimated*to*happen:* A. Production:*mechanical*losses*during*the*harvest,*and*post;harvest*sorting* B. Postharvest:*during*handling,*storage*and*transportation* C. Processing:*losses*due*to*the*processing,*spillage,*and*degradation* D. Distribution:*waste*in*the*market*system* E. Consumption:*at*the*household*level* As*reported*by*Vilela*&*Henz*(2000),*vegetables*often*arrive*at*the*main*distribution*centres*with* the* quality* relatively* depreciated,* due* to* inadequate* handling* during* the* harvest,* post;harvest,* precarious* transportation* in* inappropriate* boxes.* According* to* Lourenzani* &* Silva* (2004),* the* commonly* used* wooden* boxes* present* several* problems,* such* as* contamination* by* pests* and* pathogens,*since*they*are*often*re;used.*The*wooden*boxes*also*propitiate*losses*due*to*crushing* and* spoilage* of* products,* which* contributes* to* one* of* the* greatest* causes* of* losses* of* fruit* and* vegetables*in*the*distribution.*The*left*side*of*Figure& 71*illustrates*the*inadequate*boxes*used*in* the*tomato*distribution.*Lourenzani*&*Silva*(2004)*suggest*that*the*most*appropriate*box*are*the* plastic*boxes*that*allow*the*cleaning,*are*durable*besides*being*reusable,*and*provide*even*better* stacking.*The*right*side*of*Figure&71*shows*the*plastic*boxed*used*in*the*distribution*of*parsley.* * Figure&71:&Inadequate&wooden&boxes&for&tomatoes&at&the&wholesale&in&Nova&Friburgo;&plastic&boxes&for&parsley&at&the& producer&sale&in&Santa&Cruz& Photo*taken*by*the*author*(2014)* ! 140! It*was*possible*to*observe,*during*the*research,*that*the*commonly*called*“caixaria”*vegetables,* i.e.*fruit*vegetables*of*this*study,*were*often*commercialized*in*wooden*boxes.*The*reason*is*that* with*the*fluctuation*of*prices*and*the*type*of*commercialization*via*the*wholesale,*it*is*not*worth* for* the* farmer* to* investment* in* better* packing,* considering* the* uncertainty* sale* price* of* the* produce.*Leaf*vegetables,*on*the*other*hand,*could*be*often*seen*traded*in*plastics*boxes,*due*to* the* exigencies* of* the* retailer* sector* or* the* consumer,* in* which* is* required* better* technological* standards.*In*this*last*case,*it*is*worth*for*the*farmer*to*invest*in*better*boxes*and*be*included*in* this*market.*It*is*important*to*highlight*that*through*the*institutional*purchase,*in*PAA*and*PNAE,* it*is*also*expected*this*sort*of*standard*requirement*to*participate*in*the*programme.* Alves* &* Silochi* (2010)* add* that* the* quality* of* vegetable,* in* its* sensorial* characteristics,* is* considered* a* problem* within* the* Brazilian* commercialization* chain,* whether* in* the* wholesale,* retail,*and*direct*sale.*They*point*out*that*there*is*a*general*unawareness*regarding*essential*care* within* the* chain,* causing* significant* losses* due* to* handling,* spillage,* transportation,* contamination*and*inadequate*storage*without*refrigeration.*The*way*of*exposure*in*the*market* and* the* consumer* handling* are* also* responsible* for* losses* in* the* distribution* (Vilela* &* Henz,* 2000).* 6.5.3. Identification&of&agents& In*the*following*Table&53,*all*activities*and*agents*related*to*the*horticulture*value*chain*are*listed* for*clarity*of*analysis.* Table&53:&Functional&analysis&table&value&chain&B&C&horticulture& Activity& Agents& ⋅ Vegetable&Production& SelfCconsumption& Collection&of&the&produce& Supply&Centre&and&Distribution& ! Conventional*producers*(whole*year,*seasonal* Output& ⋅ vegetables* or*both*crop*types)* ⋅ Organic*producers* ⋅ Household*farmers** ⋅ Middlemen* ⋅ Large*retailers* ⋅ Specialized*retailers* ⋅ CEASAs*wholesale* ⋅ Small*wholesale* ⋅ Large*retailers* ⋅ Specialized*retailers* Fresh*conventional* ⋅ Organic*fresh* vegetables* ⋅ Fresh*vegetables* ⋅ Fresh*vegetables* (greens*and*veggies)* ⋅ Fresh*vegetables* (greens*and*veggies)* 141! Shopping&Centre& Mini&processing& (Selection,&washing,&sanitizing,& processing&and&packing)& ⋅ Fresh*vegetables* ⋅ Large*Retailer* ⋅ Small*retailer* ⋅ Specialized*retailer* ⋅ Agro;processing*plants* ⋅ Specialized*Retailers* ⋅ Large*retailers* ⋅ Producer** ⋅ Producer* ⋅ Street*market*vendor*(can*be*the*producer* ⋅ Fresh*vegetables* himself)* ⋅ Mini*processed* Direct&sale& ⋅ Restaurant/hotel/hospital*purchase* ⋅ Institutional*purchase*(PAA,*PNAE*and*others)* packed*or*in*bulk* ⋅ Mini;processed* vegetables* ⋅ Mini;processed* vegetables** vegetables* *Potential*agent*for*the*selected*activity* It*is*remarkable*that*while*the*CEASAs*come*down*to*be*merely*a*supply*and*distribution*center* of*the*produce,*the*retailers*are*developing*a*variety*of*activities*in*the*value*chain.*Retailers*are* performing*all*activities*since*the*collection*of*the*produce*till*the*consumer,*depending*on*the* size* and* also* on* the* specialization* of* the* retailer* network.* Additionally,* the* producer* can* also* handle* the* mini;processing* if* there* was* sufficient* investment* in* the* infrastructure* for* that* activity.*There*is*a*minimum*threshold*for*the*value*chain*upgrading*process,*which*initially*could* be* avoiding* the* complexity* and* the* uncertainty* of* the* channel* through* CEASAs,* and* secondly* adding*value*to*the*produce,*that*up*till*this*moment*has*been*centered*on*the*retail*sector.* 6.5.4. Quantification&of&Physical&Flows& The* total* quantification* of* physical* flows* in* terms* of* quantity* supplied* and* quantities* utilized* within* the* studied* horticulture* chain* is* represented* as* supply* utilization* account* (SUA)* in*Table& 54.*The*results*consider*the*following*assumptions:* • Supply* items* were* accounted* for* the* total* production* of* vegetables* and* greeneries* in* the* MB3*and*MB4*from*30*farmer*respondents;* • Utilization* items* data:* data* acquired* via* consultation* of* experts* in* the* management* of* the* supply* centers* (CEASA),* quantity* supplied* and* distributed* in* 2013* in* its* totality.* Other* wholesalers* reflect* the* total* distributed* items* in* the* “Mercado* do* Produtor”* (management* interview)* and* the* quantity* acquired* through* interviewed* traders* in* the* COOPFEIRA.* Specialized*retailer*reflects*the*utilized*items*in*the*unit*of*Tutti;frutti*in*Nova*Friburgo.*Mini* ! 142! processing*accounted*the*quantity*processed*by*the*company*Vale*Verde*in*Teresópolis.*Self; consumption* was* calculated* through* the* IBGE* (2010b)* Household* Budget* Survey* for* 119* found*households*in*MB3*and*MB4.* Table&54:&Supply&Utilization&Account&(SUA)&Horticulture& Vegetable&supply&items&(2013)& Utilization&items&(2013)& Fruit&vegetables&production&MB3,&MB4& 1,003.0& Leaf&vegetables&production&MB3,&MB4& 1,744.5& Leaf&vegetables& 25,607.7& CEASA& Fruit&vegetables& 61,058.2& Other&wholesaler& & Specialized&retailer& & Total&(tons)& Leaf&vegetables& 15.5& Fruit&vegetables& 38.7& Leaf&vegetables& 29,747.5& MiniCprocessing& Leaf&vegetables& 1.484& Self&consumption& Vegetables& 0.771715& 116469.89& 2747.455& C113722.43& The*SUA*cannot*be*considered*fulfilled*because*the*total*supplied*items*do*not*fulfill*the*utilized* items.* A* broader* analysis,* embracing* out;of;the;chain* border* actors* would* be* necessary.* For* instance,*the*quantity*utilized*in*the*CEASA*is*referred*to*the*produce*from*other*cities*of*State* Rio* de* Janeiro* and* other* Brazilian* states* as* well.* Also,* the* Tutti;frutti* chain,* which* is* the* intermediary*of*the*“Hortifruti*chain”,* also*purchases* products* from* Minas* Gerais,* being* few* of* the* produce* acquired* in* Nova* Friburgo.* The* consumer* market* is* inside* Rio* de* Janeiro* State,* mainly*the*metropolitan*region*of*the*capital*Rio*de*Janeiro.*Only*the*“Mercado*do*Produtor”*and* “COOPFEIRA”* can* represent* the* majority* of* the* commercialized* produce* coming* from* Nova* Friburgo*for*the*local*consumer*market*of*the*city.* Nevertheless,*the*SUA*was*useful*to*illustrate*the*physical*flows*of*the*agents*of*this*research.*It* is* worth* to* consider* that* Rio* de* Janeiro* is* not* self;sufficient* in* vegetables.* The* majority* of* the* vegetables*consumed*in*the*State*are*imported*from*the*other*Brazilian*States,*to*supply*the*high* demand.*The*utilized*items*of*the*CEASA*represent*more*out;of;the*chain*supply.*It*also*highlights* the*importance*of*the*potential*increase*in*the*market*for*the*Fluminense’s*production*to*satisfy* the*high*demand*of*the*city*Rio*de*Janeiro.*Due*to*the*scope*of*the*research,*the*SUA*embraces* only* the* interviewed* agents* and* 30* farmers* of* the* micro;basins.* The* overall* physical* flows* of* value*chain*B*can*be*illustrated*in*Figure&72.* ! 143! * Figure&72:&Physical&flows&in&the&value&chain&B&C&Horticulture& 6.5.5. Input&output&matrices& The* input;output* matrices* of* the* horticulture* chain* were* undertaken* basing* on* the* input* per* hectare*of*general*vegetable*production.*There*were*difficulties*in*gathering*data*of*inputs*from* farmers.*Some*farmers*didn’t*provide*the*enough*data.*The*reason*for*that*can*be*explained*due* to*the*lack*of*knowledge*about*the*different*types*of*inputs,*or*the*confusing*way*of*the*farmers* in*exposing*the*asked*information*during*interviews.*Also,*some*farmers*didn't*have*enough*time* or*were*very*timid,*and*the*intention*was*not*to*cause*any*pressure*on*the*interviewees.*Either* was* possible* to* calculate* a* detailed* input* per* type* of* crop,* due* to* these* constraints* cited,* as* farmers*provided*inputs*for*all*products*together,*not*detailed*by*crop.*In*this*case,*it*was*used* the* “scale* up”* procedure,* to* homogenize* data* and* also* cover* individually* input* gaps,* reflecting* the* inputs* for* any* vegetable* per* hectare* as* a* generalization.* The* average* input* per* hectare* calculated* from* the* farmer’s* questionnaire* is* in* Table& 55.* For* organic* production,* it* was* calculated*another*table*of*inputs,*separately*shown*in*the*same*Table&55.* Input;output*matrices*were*grouped*in*micro;basin*and*activity*for*comparison.*The*community* referent*results*are*in*Table&56.*Visual*matrices*illustrate*the*results*of*MB3*and*MB4*(Figure&73).* The* organic* production* was* accounted* separately* in* a* different* matrix,* and* presented* comparatively*lower*output*per*hectares*and*also*lower*quantity*of*input*per*hectares.* ! 144! Table&55:&InputCoutput&quantities&need&to&produce&1&ha&of&vegetables&in&the&studied&area& Activity:&growing&1&ha&of&vegetables&(in&the&study&area)& Unit& & Input&quantities&per&ha&(conventional&production)* & Average&quantity&per&ha& Manure* Ton* 9.7* Fertilizer* Ton* 2.3* Pesticides*(many*types*)* Kg/Litre* 8.9* Micro*nutrients* Litre* 0.8* Boxes* Unit* 571.1* Limestone* Ton* 1.3* Fuel* Litre* 324.4* Thousand* 9,052.5* Ton* 36.1* Organic*Compost* Ton* 2.5* Castor*plant*compost* Ton* 0.75* Bordeaux*mixture* Kg* 5* Organic*pesticides* Litre* 2.5* Ton* 9.1* Seedlings** Output&quantity&per&ha& Vegetable*produce* Input&quantities&per&ha&(organic&C&biological&production)& Output&quantity&per&ha& Vegetable*produce* *Note:* Many* pesticides* are* used* for* one* specific* crop,* and* each* crop* has* its* different* type* of* pesticide* used.* For* calculation,* it* was* generalized* to* aggregate* data* for* analysis.* The* seeds* are* acquired* or* through* seedling* or* seeds,* depending* on* the* crop,* it* was* considered* the* amount* of* plants* used* per* hectares* independently* on* the* type* of* acquisition.* Table&56:&InputCOutput&matrices&table&by&community&in&Value&Chain&B& Input&quantities&per&ha& (conventional&production)& Barracão&dos& Mendes& Florândia&da& Serra& Rio& Grande& Serra&Nova&e& Serra&Velha& Salinas& Santa& Cruz& Manure* Ton* 14.6* 23.3* 32.0* 66.0* 21.3* 58.2* Fertilizer* Ton* 3.5* 5.5* 7.6* 15.6* 5.1* 13.8* Pesticides*(many* types)* Kg/L* 13.4* 21.4* 29.4* 60.5* 19.6* 53.4* Micro*nutrients* L* 1.2* 1.9* 2.6* 5.4* 1.8* 4.8* Boxes* Unit* 856.7* 1,370.6* 1,884.6* 3,883.5* 1,256.4* 3,426.6* Limestone* Ton* 2.0* 3.1* 4.3* 8.8* 2.9* 7.8* Fuel* L* 486.6* 778.6* 1,070.5* 2,205.9* 713.7* 1,946.4* Seedlings* K* 13,578.8* 21,726.0* 29,873.3* 61,557.0* 19,915.5* 54,315.0* Ton* 54.2* 86.6* 119.13* 245.48* 79.42* 216.6* Output&quantity&per&ha& Vegetable*produce* * ! 145! * * * Figure&73:&InputCoutput&matrices&of&one&representative&producer&for&value&chain&B& Matrices*elaborated*by*the*author*based*on*the*fieldwork*and*the*methodology*(Bellù,*2013).*Note:*seedling*was* simplified*to*thousand*K.* 6.6. Step&6:&Economic&Analysis&of&the&value&chain&B& 6.6.1. Production&Account& 6.6.1.1. Total&Output&Value& For*the*total*output*value,*there*are*four*assumptions*used*in*this*study:* (A)*Sales*Revenue:*It*was*considered*the*total*output*value*of*a*representative*farmer*in*2013*of* each* community* and* micro;basin,* considering* all* vegetables* sold* in* kilograms* and* the* average* sale*price*per*kilogram*of*each*vegetable.* (B)*Own*final*consumption:*Calculation*was*performed*using*the*sum*of*encountered*household* size* and* the* average* consumption* per* capita* of* vegetables* in* Rio* de* Janeiro.* The* annual* per* ! 146! capita* consumption* (kg/per* capita* year;1)* according* to* the* Household* Budget* Survey* (IBGE,* 2010b)* is* 0.361* for* Chinese* cabbage,* 0.751* for* lettuce,* 0.317* for* cauliflower,* 4.333* for* tomato,* and* 0.346* for* green* bean* and* 0.377* for* beetroot.* It* was* used* the* average* sale* price* at* the* producer*level*to*calculate.* (C)*Change*in*the*inventories:*There*was*not*found*any*storage*in*the*vegetable*production.*The* produce* is* distributed* right* after* being* harvested,* due* to* high* perishability* of* the* product.* No* farmers*had*fridge*chambers*to*store*the*produce*for*a*longer*period.*As*a*matter*of*fact,*it*is*not* common*to*observe*cold*chain*in*the*domestic*market.*In*this*case,*this*item*was*considered*null* in*the*calculations.* (D)* Total* output* value* =* A+B+C:* The* output* value* represents* the* account* of* a* representative* farmer*of*the*clustered*group.*The*results*are*in*Table&58.* It* is* possible* to* infer* from* the* total* output* value* from* the* farmers* that* in* general,* the* representative* farmers* of* the* conventional* production* have* similar* output* values.* Only* the* community*Serra*Velha*and*Serra*Nova*presented*higher*output*value*in*comparison*to*the*other* communities*in*the*same*micro;basin.*That*is*the*reason*the*MB4*showed*a*higher*output*value* as* compared* to* the* MB3.* The* organic* producers* still* have* less* output* value,* due* to* the* lower* outputs*obtained*in*general.*However,*the*price*paid*per*kilogram*was*much*higher,*offering*the* organic*farmer*a*comparatively*higher*output*value*in*relation*to*the*total*production.* Table&57:&Total&output&value&at&the&production&level&C&Value&chain&B& Sales&Revenues& (A)& Own&Final& Consumption&(B)& Change&in& Inventories&(C)& Total&Output&Value& (D=A+B+C)& Barracão&dos&Mendes& R$92,992.58* R$31.09* ;* R$93,023.67* Florândia&da&Serra& R$71,809.48* R$34.25* ;* R$71,843.74* Rio&Grande& R$87,974.24* R$38.06* ;* R$88,012.30* Salinas& R$89,264.51* R$38.06* ;* R$89,302.57* Santa&Cruz& R$91,199.59* R$47.57* ;* R$91,247.17* Serra&Nova&e&Serra&Velha& R$183,805.94* R$47.57* ;* R$183,853.52* MB3& R$101,024.72* R$37.11* ;* R$101,061.83* MB4& R$109,145.56* R$38.50* ;* R$109,184.06** Organic&Producers& R$56,777.00* R$49.15* ;* R$56,826.15* Total& R$201,949.23* R$40.15* ;* R$201,989.39* One&representative&producer& Upstream* agents* were* accounted* separately,* using* available* data* acquired* through* interviews.* There*were*many*obstacles*in*performing*the*interviews.*At*the*CEASA*wholesale,*data*was*not* fully*obtained,*due*to*lack*of*interest*of*the*traders*in*participating*in*the*questionnaire*interview* ! 147! and* also* due* to* lack* of* help* from* the* market* management.* Traders* were* suspicious* and* didn’t* want*to*waste*their*time*to*cope*with*the*research.*The*study*was*conducted*in*three*days*at*the* CEASA*Grande;Rio,*few*traders*or*managers*wanted*to*cope*with*the*research.*The*results*reflect* the*data*acquired*from*6*traders,*which*gave*incomplete*answers.*The*manager*of*the*wholesale* confiscated*the*questionnaires,*to*avoid*disturbance*of*the*traders,*and*offered*the*collection*of* data*along*with*the*collection*of*daily*prices*performed*by*them.*No*data*has*yet*even*returned* after*two*attempts*to*meet*the*manager.*Calculations*assumed*the*quantity*traded*and*the*sale* price*by*each*to*make*up*a*representative*of*the*sector.* The*same*sort*of*obstacles*was*found*with*other*upstream*agents.*They*also*provided*incomplete* information*in*the*questionnaires.*The*middlemen*at*the*“Mercado*do*Produtor”*didn’t*provide* complete*answers.*The*surveys*of*traders*at*the*COOPFEIRA*were*the*completed*ones,*and*most* helpful* in* the* research.* The* mini;processing* and* specialized* retailers* didn’t* provide* entirely* accurate* information.* No* pressure* was* imposed* on* them* either.* The* calculation* considered* an* estimated* quantity* sold* at* the* sale* price* and* change* in* the* inventories* was* considered* the* amount*stored*at*the*enterprise*according*to*fridge*chambers*capacities,*with*the*available*data* collected.*The*results*of*the*upstream*agents*for*a*year*period*are*shown*in*Table&59.* Table&58:&Total&Output&value&upstream&agents&Value&Chain&B& One&representative&agent& A* B* C* D=A+B+C* Sales& Revenues& Own*Final* Consumption* Change*in* Inventories* Total*Output* Value* CEASA&trader& Small& wholesale& trader& Middlemen& Mini&C processing& Distributer&for& specialized& retailer& 2,434,656.00* 314,170.00* 282,525.00* 2,032,247.00* 5,110,000.00* ;* ;* ;* ;* ;* ;* ;* 22,325.00* 70.00* 16,250.00* 2,434,656.00* 314,170.00* 304,850.00* 2,032,317.00* 5,126,250.00* 6.6.1.2. Gross&Value&Added&(GVA)&& For*reason*of*analysis,*it*has*been*considered*the*two*assumptions:* (E)*Intermediate*input*costs:*accounted*the*total*inputs*entering*the*production*process,*totally* consumed* in* the* production* period* of* the* year* 2013.* It* were* considered:* Intermediate* Inputs* Produced* Inside* the* Value* chain* (IIIC),* which* are* the* outputs* of* downstream* agents,* e.g.* vegetables;* and* Intermediate* Inputs* Outside* the* Value* Chain* (IIOC)* were* the* inputs* such* as* fertilizers,* pesticides,* etc.* Due* to* the* already* explained* problems* with* data* collection* regarding* ! 148! inputs* of* the* farmers,* the* IIOC* was* estimated* as* the* total* cost* per* hectare* of* each* farmer,* to* homogenize* and* get* rid* of* the* gaps.* Then* the* cost* of* input* per* hectare* was* scaled* up* to* the* representative* of* micro;basin* and* community.* Discrepant* data* was* annulled* during* the* homogenization.*The*detailed*results*of*IIOC*are*presented*in*Appendix&11*in*Table&65.* (F)*Gross*Value*Added*(GVA):*The*GVA*calculated*represents*the*value*of*output*net*of*the*value* of* the* intermediate* input* costs.* The* results* were* clustered* in* community* and* micro;basin,* separating* the* organic* producers,* for* the* effect* of* comparison.* Upstream* agents* of* the* chain* were* accounted* separately.* The* IIIC,* IIOC,* and* GVA* represent* the* average* of* a* representative* agent,*community*or*micro;basin.*The*overall*GVA*calculation*results*are*in*Table&60.** Table&59:&Gross&Value&Added&(GVA)&of&the&agents&in&the&Value&Chain&B& Representative& agent& Producer&agents& IIIC& IIOC& (E)&Intermediate& Input&costs& (D)&Total&Output& Value& (F)&Gross&value& Added& * * * * * ;* R$13,530.44* R$13,530.44* R$93,023.67* R$79,493.23* ;* R$21,648.70* R$21,648.70* R$71,843.74* R$50,195.04* Rio&Grande& ;* R$29,766.96* R$29,766.96* R$88,012.30* R$58,245.34* Barracão&dos& Mendes& Florândia&da& Serra& Salinas& ;* R$19,844.64* R$19,844.64* R$89,302.57* R$69,457.93* Santa&Cruz& ;* R$54,121.75* R$54,121.75* R$91,247.17* R$37,125.42* Serra&Nova&e& Serra&Velha& ;* R$61,337.99* R$61,337.99* R$183,853.52* R$122,515.53* MB3& ;* R$36,983.20* R$36,983.20* R$101,061.83* R$64,078.63* MB4& ;* R$31,571.02* R$31,571.02* R$109,184.06* R$77,613.04* ;* R$33,600.59* R$33,600.59* R$103,441.11* R$69,840.52* ;* R$3,906.50* R$3,906.50* R$56,826.15* R$52,919.65* * R$2,108,622.00* * R$19,092.00* * R$2,127,714.00* * R$2,434,656.00* * R$306,942.00* Small&wholesale& trader& R$236,889.30* R$22,784.00* R$259,673.30* R$314,170.00* R$54,496.70* Middlemen& R$194,992.50* R$18,558.00* R$213,550.50* R$304,850.00* R$91,299.50* MiniCprocessing& R$754,236.00* R$308,200.00* R$1,062,436.00* R$2,032,317.00* R$969,881.00* Distributor& specialized& retailer& R$3,041,362.50* R$588,000.00* R$3,629,362.50* R$5,126,250.00* R$1,496,887.50* Average& conventional& Producer& Organic& Producers& Upstream&agents& CEASA&trader& The* results* revealed* an* ascending* add* of* the* gross* value* in* the* horticulture* chain.* Also,* it* is* remarkable* that* the* specialized* retailer* distributors* and* the* mini;processing* plants* have* much* more*value;added*as*compared*to*the*wholesalers*and*traders*acting*through*the*CEASA*system.* ! 149! These*specialized*agents*trade*more*individually*packed*vegetables,*sanitized*and*mini;processed* vegetables,*and*ready;to;eat*meals,*which*meets*the*consumer*market*needs.*On*the*other*hand,* the*system*of*the*CEASAs*trades*more*in*quantity,*being*more*a*center*for*supply*and*distribution* system.*There*was*no*difference*found*in*terms*of*gross*value*added*by*conventional*and*organic* producers* 6.6.1.3. Net&Value&Added&(NVA)& The*account*of*Net*Value*Added*considered*the*same*two*assumptions,*as*described*in*the*coffee* value*chain:* (G)* Consumption* of* fixed* capital* –* Cf:* It* was* calculated* the* consumption* of* fixed* assets,* e.g.* machinery,* equipment,* buildings.* Cf* was* calculated* using* the* formula* Cf=) CIINT,* together* with* income* account* over* the* next* topic 26.* The* same* standard* lifespan* of* fixed* assets* used* was* extracted*from*Normative*Instruction*SFR*N°162*by*the*“Receita*Federal*do*Brasil”*(Ministério*da* Fazenda,* 1998,* 2015).* The* results* were* grouped* to* get* a* representative* farmer* of* each* community,*each*micro;basin;*also*to*every*upstream*representative*agent.*It*is*observed*that*for* the*value*chain*B,*farmers*do*not*hold*many*assets.*The*assets*found*were*resumed*to*irrigation* systems,*small*tractor*and*greenhouses.*The*majority*of*the*assets*were*acquired*via*institutional* finance*from*Pronaf.*Organic*producers*had*much*more*incentives*in*this*regarding.* (H)*Net*Value*Added*(NVA):*the*account*was*according*to*the*formula*H=F;G,*expressing*the*value* of*output*net*of*the*value*of*both*intermediate*inputs*minus*the*consumption*of*fixed*asset.*The* results*of*the*value*chain*B*are*in*Table&61.* Table&60:&Net&value&Added&Value&Chain&B& (G)&Consumption&of& fixed&asset&(Cf)& (F)&Gross&Value& Added&–&GVA& (H=FCG)&Net&value& Added&–&NVA& Barracão&dos&Mendes& R$5,050.00* R$79,493.23* R$74,443.23* Florândia&da&Serra& R$1,276.00* R$50,195.04* R$48,919.04* Rio&Grande& R$2,633.75* R$58,245.34* R$55,611.59* Serra&Nova&e&Serra&Velha& R$5,820.00* R$122,515.53* R$116,695.53* Salinas& R$10,145.00* R$69,457.93* R$59,312.93* Santa&Cruz& R$22,625.00* R$37,125.42* R$14,500.42* MB3& R$16,385.00* R$64,078.63* R$47,693.63* MB4& R$3,694.94* R$77,613.04* R$73,918.10* * !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 26 *Formulas*and*calculations*of*Cf,)C*and*INT*are*detailed*in*the*Methodology*chapter* ! 150! Average&conventional& Producer& R$7,924.96* R$69,840.52* R$61,915.56* Organic&Producers& R$1,385.00* R$52,919.65* R$51,534.65* CEASA&trader& R$29,250.00* R$306,942.00* R$277,692.00* Small&wholesale&trader& R$27,333.33* R$54,496.70* R$27,163.37* Middleman& R$42,600.00* R$91,299.50* R$48,699.50* MiniCprocessing& R$15,940.00* R$969,881.00* R$953,941.00* Specialized&retailer& distributor& R$360,000.00* R$1,496,887.50* R$1,136,887.50* 6.6.1.4. Findings&of&the&Production&Account& The* distribution* of* value;added* along* the* horticulture* chain* is* not* even,* after* discounting* the* consumable*costs.**The*producer,*whether*conventional*or*organic,*is*the*most*vulnerable*agent* of* the* chain,* with* less* share* of* value;added.* The* distribution* of* value* added* does* not* follow* a* normal*trend*line,*and*it*is*possible*to*infer*that*the*value;added*concentrates*on*the*specialized* retailers* and* mini;processing* plants.* These* agents* are* the* ones* targeting* at* most* the* consumer* preferences* and* needs,* and* the* consumer* pay* for* the* higher* price* of* the* products* offered* by* them.*On*the*other*side,*there*are*the*wholesale*agents,*whose*primary*objective*is*to*supply*and* distribute*the*produce*in*State*of*Rio*de*Janeiro.*Nevertheless,*the*environment*of*trade*created* by* the* concentration* of* the* produce* (supply)* at* one* center* of* purchase,* reduce* the* sale* prices* significantly.* Consequently,* all* other* agents* that* depend* on* this* uncontrolled* price* system* (i.e.* producers,* small* wholesalers,* and* middlemen)* are* squeezed* to* fit* the* market.* Figure& 74* illustrates*the*unequal*value;added*distribution*of*the*value*chain,*representing*the*agents’*share* of*value;added*and*the*trend*line*of*value;added*concentration.* Specialized&retailer&distributor& 44%& MiniCprocessing& Middleman& Small&wholesale&trader& 37%& 2%& 1%& CEASA&trader& 11%& Organic&Producers& 2%& Average&convennonal&Producer& 2%& * Figure&74:&Net&value&added&in&the&horticulture&value&chain& ! 151! Certainly* there* is* an* unequal* distribution* of* value;added* in* the* horticulture* chain.* This* fact* highlights*the*importance*of*decision;makers*to*provide*more*incentives*to*the*producers*so*that* they*can*achieve*a*minimum*threshold*to*upgrade*in*the*value*chain.*One*of*the*options,*already* cited*is*the*provision*of*agro;processing*assets*for*the*community,*to*bring*overall*benefit*to*the* producers.* Another* aspect* is* the* decision* of* the* farmers* to* opt* for* more* ecological* production* systems,*which*has*reduced*inputs,*and*allied*to*the*agro;processing,*would*bring*more*wealth*to* the*farmer*communities.* 6.6.2. Income&Account& 6.6.2.1. Wages& Wages*followed*the*same*structure*of*the*coffee*value*chain*section.*Same*labor*and*social*fees* were* considered.* The* only* exceptions* are:* Family* work* was* estimated* at* opportunity* cost,* considering*the*minimum*wage*of*R$724.00,*or*the*value*of*a*day*of*service,*plus*all*charges.*The* sharecroppers* were* treated* as* family* labor.* Temporary* workers* considered* the* minimum* wage* for* the* minimum* period* contract* of* two* months* according* to* Regulation* Law* No.* 5.889/73,* Decree* No.* 73.626/74* (Brasil* ;* Casa* Civil,* 1973,* 1974).* The* traders* were* also* estimated* by* a* minimum*wage*service*payment,*considering*that*they*are*the*enterprise*owners.*The*results*of* wage*account*are*in*Table&66*in*Appendix&12.* 6.6.2.2. Interests&of&fixed&assets&& It*was*used*the*Normative*Instruction*SFR*N°162*by*the*“Receita*Federal*do*Brasil”*(Ministério*da* Fazenda,* 1998,* 2015)* as* calculation* reference,* and* the* rate* of* r) =* 13.31%.* INT* was* calculated* through*the*equation*Cf)(Cf=CIINT).*The*coefficients*of*depreciation*rate*used*are*in*Table&28*the* Chapter&5.** The*differentiation*of*assets*was*not*high.*Most*of*the*assets*were*farming*equipment*and*small* tractors.*Some*producers*held*greenhouses*for*intensive*production.*The*wholesalers*and*traders* most*of*the*time*just*had*a*vehicle*for*the*transportation*of*theirs*goods.*For*specialized*retailers* and*mini;processing*plants,*it*was*considered*the*building*installations,*the*processing*machinery* and*equipment,*and*vehicles*for*transportation.*The*total*interest*cost*plus*eventual*maintenance* costs*of*the*assets*in*the*value*chain*B*are*in*Table&62.* ! 152! Table&61:&Interests&of&fixed&assets&and&eventual&maintenance&cost&in&value&chain&B& Barracão&dos&Mendes& & Florândia&da&Serra& Total&INT& Maintenance&cost&/year& R$1,261.32* R$790.00* R$828.98* ;* Rio&Grande& R$2,789.91* R$706.19* Serra&Nova&e&Serra&Velha& R$1,424.11* R$902.50* Salinas& R$2,549.29* R$1,600.00* Santa&Cruz& R$4,873.36* R$3,350.00* MB3& R$3,711.32* R$2,475.00* MB4& R$1,576.08* R$599.67* Average&conventional&Producer& R$2,287.83* R$1,224.78* Organic&Producers& R$2,131.67* R$135.00* * R$7,758.93* * ;* Small&wholesale&trader& R$7,250.51* ;* Middleman& R$11,300.19* ;* MiniCprocessing& R$20,812.39* R$1,250.00* Specialized&retailer&distributor& R$181,172.60* ;* Upstream&agents& CEASA&trader& 6.6.2.3. Taxes& About*37%*of*the*farmers*claims*pay*taxes*about*the*production.*The*other*part*declared*to*be* exempt* from* it* or* didn’t* have* the* acknowledgement* of* such* information.* The* fact* is* that* according*to*the*Agreement*ICMS*(VAT)*89/00*(Governo*do*Estado*do*Rio*de*Janeiro,*2000),*there* is*exemption*from*VAT*in*the*State*of*Rio*de*Janeiro*for*horticultural*products.*Additionally,*in*the* article*7*of*the*common*law*Nº*4367,*from*28th*June*2004*(Governo*do*Estado*do*Rio*de*Janeiro,* 2004),*is*given*the*benefit*of*the*reduction*of*100%*for*the*output*of*fruit*and*vegetables*within* the*territory*of*Rio*de*Janeiro.*It*conforms*to*the*standards*set*by*Resolution*N°*112*from*21st* June*2004*referred*to*the*invoice*notes*of*the*farmer*(Secretaria*de*Estado*da*Fazenda*do*Rio*de* Janeiro,*2004).*The*37%*respondent*farmers*realize*the*transaction*of*goods*using*invoice*notes,* often*imposed*by*the*purchaser*or*by*institutional*programs.*Usually,*there*is*a*tax*fee*collected* by*trade*union*Senar;Rio*over*the*sales*revenue*of*agricultural*products,*which*falls*to*them*at*a* 0.2%*rate*over*the*producer*(Senar;Rio,*2009).* In*this*sense,*it*was*calculated*for*the*37%*tax*payers*the*aliquot*of*0.2%*over*the*sales*revenues.* The*upstream*agents*also*claimed*to*be*exempt*from*tax*in*the*state*of*Rio*de*Janeiro,*as*proved* by* the* law* above.* The* wholesale* sector* of* retail* industry* shall* issue* the* electronic* invoice,* and* pay* 10%* tax* on* the* goods.* However,* many* of* the* respondents* do* not* operate* within* the* rules,* and* many* horticultural* products* are* traded* in* the* informality.* According* to* a* government* ! 153! assessment,* selling* without* issuance* of* an* invoice* is* the* most* common* irregularity* seen* within* the* CEASAs* (Governo* do* Estado* do* Rio* de* Janeiro,* 2015).* That* might* be* one* of* the* reasons,* traders* were* so* fearful* about* the* questionnaire* and* didn’t* participate.* Calculation* considered* only*33%*of*the*respondents*of*the*wholesalers,*including*the*CEASA,*“Mercado*do*Produtor”*and* COOPFEIRA.* None* of* the* specialized* retailer* distributor* or* mini;processed* plants* paid* taxes,* according*to*the*provided*information*during*the*interview.*The*taxes*of*the*value*chain*B*are*in* Table&63.* Table&62:&Annual&production&taxes&in&the&value&chain&B& Producer& Barracão&dos&Mendes& Taxes&(invoice¬es)& ;* Upstream& Taxes&(electronic&invoices)& CEASA& 81155.2* Florândia&da&Serra& R$1,436.19* Small&wholesale& Rio&Grande& R$1,759.48* Middleman& Serra&Nova&e&Serra&Velha& R$3,676.12* MiniCprocessing& ;* Salinas& R$1,785.29* Specialized&distributor& ;* Santa&Cruz& 9417.5* ;* MB3& R$892.65* MB4& R$1,717.95* Organic&Producers& 10472.33333* * ;* 6.6.2.4. Rents& Producers* interviewed* said* they* do* not* have* costs* related* to* water* or* land* rent* or* any* other* resource* because* they* subtract* water* directly* from* water* sources* and* springs* at* no* charge* imposed* on* them.* The* organic* producer* said* to* lease* land,* and* the* cost* was* counted.* CEASA* traders* and* small* wholesalers* (COOPFEIRA)* also* pay* for* the* use* of* stone* (“pedra”),* the* space* where* they* trade,* which* is* R$12.00* per* 80* volumes* in* the* Pavilion* 21.* The* results* of* taxes* are* together*with*the*general*calculation*of*profits*or*losses*in*Table&67*in*Appendix&13.* 6.6.2.5. Profit&or&Losses& It* was* used* the* equation* Profit) =) NVA) –) production) factors) (Wage,) Interests,) Taxes,) Rents)* for* calculations.* All* detailed* results* are* in* Table& 67* in* Appendix& 13.* For* the* effect* of* analysis,* the* profits* or* losses* were* compared* according* to* the* profit* share* in* the* value* chain.* Figure& 75* illustrates*the*proportion*of*profit*among*the*value*chain*agents.* ! 154! * Figure&75:&Value&added&distribution&share&in&the&value&chain&B& 6.6.2.6. Income&Account&findings& The* results* show* that* after* discounting* all* costs,* fixed* and* variables,* some* value* chain* agents* presented*dividends*instead*of*a*profit.*The*negative*share*rate*is*of*some*importance*in*the*farm* or*business*management.*It*seems*producers*don't*take*into*consideration*the*production*factor* wage,*being*the*reason*some*farmers*don’t*notice*the*annual*losses*in*his*enterprise.*It*is*possible* to* see* that* the* most* vulnerable* groups* are* at* the* production* level,* mainly* the* communities* Florândia*da*Serra,*Rio*Grande,*Salinas*and*Santa*Cruz,*in*both*micro;basins.*It*was*surprising*that* the*organic*producer*presented*a*positive*balance,*despite*the*need*to*rent*land*to*produce.*The* organic* producers* also* count* with* many* benefits* from* the* institutional* support,* due* to* the* program* aims* of* giving* incentive* to* more* sustainable* production.* The* sustainable* production* should* continuously* be* encouraged* within* the* micro;basins.* The* organic* production* would* rid* conventional* producer* from* the* prices* instability* of* the* CEASA* system,* and* additionally* achieve* higher*income*through*the*direct*sale.** The*wholesale*market*didn’t*present*so*much*great*profit*either*as*compared*to*the*other*agents,* grabbing* around* 8.5%* of* the* value* added* share.* The* small* wholesalers,* i.e.* traders* at* the* COOPFEIRA* and* middlemen* at* the* “Mercado* do* Produtor”* are* the* most* affected* among* the* wholesaler*agents.*These*agents*are*squeezed,*because*they*operate*under*the*price*system*of* the* CEASA,* entirely* vulnerable* to* price* crashes.* Consequently* they* impose* these* conditions* on* the*producers,*in*order*to*fit*the*market*environment.* ! 155! The*disparity*seen*is*indeed*about*the*specialized*market.*These*agents*add*value*to*the*produce,* by*packing,*by*sanitizing,*selecting*or*mini;processing*the*vegetables.*They*pay*the*producer*the* same*price*as*the*wholesaler*agents*do.*However,*they*get*extremely*elevated*sales*revenue,*in* selling*those*convenient*products,*ready;to;eat*meals,*to*the*higher*income*consumer*market*in* the*capital*through*a*very*specialized*market*such*as*the*Hortifruti/Tutti;frutti*chain.*This*network* is*specialized*in*selling*mini;processed*or*in*bulk*vegetables,*which*is*convenient*to*the*consumer.* It*is*relevant*to*note*that*the*account*here*presented*is*relative*only*to*the*studied*vegetables,* i.e.*tomato,*green*bean,*parsley,*beetroot,*cauliflower,*lettuce*and*Chinese*cabbage.*One*might* imagine*how*high*it*would*be*the*profit*of*such*powerful*retailer*chains,*considering*all*types*of* vegetables*and*products.* The*conclusion*of*this*finding*is*that*the*value*chain*is*creating*value*added,*but*the*distribution*is* very* concentrated* at* the* specialized* market* agents.* It* can* be* said* that* some* producers* are* practically*struggling*to*carry*on*their*businesses*and*thus*their*livelihoods.* 6.7. Market&Map&Framework&Value&Chain&B& The*market*map*framework*of*the*value*chain*B*(horticulture)*is*represented*in*Figure&76.* * Figure&76:&Market&Map&Framework&Value&Chain&B& ! 156! The* map* displays* the* enabling* environment.* Additionally,* the* map* shows* the* current* or* suggested*offerings*of*extension*services*or*business,*which*gives*the*opportunity*to*upgrade*the* value* chain* level.* Also,* the* analysis* SWOT 27 *of* this* value* chain* obtained* through* the* questionnaire*is*in*Table&68*in*Appendix&14.*The*SWOT*analysis*provided*valuable*information*to* base*the*market*map.* The* map* considers* many* aspects.* One* aspect* is* that* it* resumed* all* performed* analysis.* Every* point*of*consideration*in*every*analytical*step*is*highlighted*in*this*figure.*Another*aspect*is*the* suggested*opportunity*for*improvement*in*the*chain.*The*analysis*revealed*that*the*farmer*is*the* most* vulnerable* agent* of* the* value* chain.* The* primary* factor* constraining* the* farmer* is* the* traditional* way* of* distribution* through* the* CEASAs,* which* concentrates* the* production* and* changes* the* environment* of* prices.* Although* the* CEASA* is* still* the* main* channel* of* commercialization,* the* system* no* longer* attends* to* the* demand* of* the* market* and* does* not* contribute* to* a* sustainable* development* of* the* value* chain.* The* suggested* option* here* is* to* minimize*the*dependency*on*the*wholesale,*on*the*middlemen,*which*is*limiting*the*farmer*and* his*enterprises*balance.* Another* point* that* is* limiting* the* farmer* is* the* little* technological* pattern.* Although* there* are* many* policies* giving* incentives* to* them,* yet* they* have* not* reached* a* minimum* threshold* to* be* independent.* The* technological* mode* restricts* their* inclusion* in* the* specialized* market,* which* demands*higher*standards*of*production.** However,*the*farmer*has*things*on*his*side:*high*profitability*in*short;term,*strategic*location*near* the*urban*centre*and*the*Comperj*system,*availability*of*pro;family*farming*programmes*already* in* place,* and* an* increasing* demand* for* healthier* foods,* due* to* epidemiologic* problem* of* the* NCDs.** The* benchmark* for* an* improvement* of* the* value* chain* is* the* inner* organization.* Farmers* need* more*union*for*their*own*benefit.*The*union*has*already*started*after*the*disaster*in*2011,*to*get* the*emergency*help*from*the*government.* So,* the* post;emergency* programs* need* to* continue,* strengthening* the* farmer,* enhancing* the* promotion*of*more*sustainable*production,*which*is*the*main*way*to*get*more*resilience*to*future* disasters.* Also,* local* institutions* working* in* the* study* area* can* facilitate* the* linkages* between* farmers* and* benefits,* including* accessibility* to* better* markets.* Additionally,* the* supporting* institutions* can* easy* the* means* to* get* finance* for* agro;processing* structure* owned* by* the* community.*The*facilitation*together*with*the*sense*of*union*is*the*great*recipe*for*an*upgrading* process*and*valorisation*of*the*communities.* * !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 27 *The*SWOT*analysis*was*used*only*in*the*analysis*of*value*chain*B.*For*the*value*chain*A*was*used*table*of*cause*and* effect.* ! 157! 7. CONCLUSIONS&AND&RECOMMENDATIONS& The*value*chain*analysis*was*an*efficient*tool*to*detect*the*main*misalignments*and*opportunities* for* improvement* in* the* value* chains* of* coffee* in* the* Northwest* Region* and* horticulture* in* the* Mountain* Region.* The* analysis* was* driven* to* target* particular* groups* of* family* farming* communities* in* the* micro;basins* studied.* The* research* identified* the* most* vulnerable* communities,*which*were*Degredo*and*Boa*Ventura*in*the*micro;basin*Ribeirão*da*Onça,*and*the* majority*of*the*communities*in*micro;basins*Barracão*dos*Mendes*and*Santa*Cruz.*The*perceived* problems* can* offer* insight* into* the* decision;making* process,* to* address* adequate* technologies,* and* facilitate* the* linkages* with* better* markets.* Consequently* by* upgrading* the* condition* of* the* stallholder,*it*enables*the*conditions*for*sustainable*development*in*the*rural*regions*of*the*State* Rio*de*Janeiro.* There*is*an*ultimate*need*to*modernize*the*commercialization*of*agricultural*products*within*the* State,* considering* the* deficit* in* quantity* and* quality,* regarding* the* demand,* and* the* increasing* changes*in*the*market*environment,*which*difficult*the*adaptation*of*the* small*producer.*Three* main*concluding*and*recommending*issues*are*worth*of*consideration.** Initially,*the*decision;makers*should*facilitate*the*access*to*technologies,*addressing*at*the*same* time* a* higher* quality* product* standard* and* the* conservation* of* the* natural* environment.* The* current*low*technological*pattern*is*constraining*the*coffee*growers*to*pursuit*better*quality*and* reduced* costs* of* production.* The* technology* structure* is* also* restricting* the* access* to* better* markets*and*socio;environmental*resilience*for*the*horticulture*producer.*It*is*essential*to*set*a* minimum*technological*threshold*to*upgrade*the*farmer*in*the*value*chain*and*be*independent*of* the*governmental*assistance*in*a*long*term.*This*fact*is*significant*to*be*tackled*into*programs*and* policies.* More* specifically,* Northwest* Region* still* needs* investments* in* adequate* harvest* and* post;harvest* processing* technologies* to* overcome* the* bad* reputation* of* its* coffee* quality* and* prepare* for* the* biannual* cycle* changes.* Moreover,* the* Mountain* Region* needs* improvement* in* the* logistic* structure* and* sustainable* production* systems,* to* better* deal* with* the* high* competitiveness*of*the*market*and*the*exigent*demand.* Second,*it*is*fundamental*to*propitiate*an*equalization*of*wealth*and*a*reasonable*distribution*of* value;added* in* the* value* chain.* For* that* matter,* there* is* an* urgent* necessity* to* establish* appropriate*regulatory*bodies,*to*regulate*market*distortions.*More*accordingly,*Rio*de*Janeiro’s* coffee*industry*has*shrunk*due*to*applied*market*regulations,*which*limits*the*options*of*trade*for* the* coffee* growers* at* relatively* low* sale* prices.* This* sort* of* weaknesses* is* in* the* face* of* the* requirement*of*new*incentives,*which*could*be*set*at*the*production*level,*providing*farmers*the* ! 158! maximum*value;adding*activities*as*possible.*Furthermore,*the*horticulture*chain*is*entangled*by* the* traps* of* the* competitiveness* imposed* by* the* CEASA* system,* which* constraints* all* agents* operating*at*the*maladjusted*price*system.*Inevitably,*the*burden*falls*on*the*producer*at*most.* However,*to*transform*the*whole*CEASA*system*is*beyond*the*Secretariat*of*Agriculture*changing* capabilities.*The*options,*in*this*case,*are*to*start*from*the*bottom*and*improve*the*core*of*the* production* system.* Strengthening* the* most* weakened* part* can* unbind* the* producer* from* the* wholesale,*and*facilitate*the*linkages*with*enhanced*markets,*more*conveniently*the*green*ones.* And* last,* for* an* adequately* rural* sustainable* development,* the* setup* value* chain* governance* should*consider*an*inner*change.*There*is*a*deep*necessity*of*improved*coordination*among*the* stakeholders,* including* value* chain* agents,* and* institutions* supporting* the* value* chain.* Additionally,* farmers* ought* to* recognize* the* power* of* their* organization* structure* as* the* benchmark* key* for* the* development.* It* is* worthwhile* that* the* most* vulnerable* groups* organize* more*efficiently,*to*open*space*for*governmental*intervention,*capacity*building,*and*resilience*to* all*sorts*of*changes,*whether*social,*economic*or*environmental.* & ! & 159! 9. 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Vilela,*N.*J.,*Lana,*Milza,*M.,*Nascimento,*E.*F.*and*Mkishima,*N.*(2003)*‘O*peso*da*perda*de* alimentos*para*a*sociedade:*o*caso*das*hortaliças’,*Horticultura)Brasileira,*21(2),*pp.*141– 143.* Vilela,*P.*and*Rufino,*J.*(2010)*‘Caracterização*da*cafeicultura*de*montanha*de*Minas*Gerais’,* Estudos)INAES)e)FAPEMIG.)Cadeias)Produtivas.)Café,*I,*[online]*Available*from:* http://scholar.google.com/scholar?hl=en&btnG=Search&q=intitle:Caracteriza??o+da+Cafeic ultura+de+Montanha+de+Minas+Gerais#0.* Weinberger,*K.*and*Lumpkin,*T.*a.*(2007)*‘Diversification*into*Horticulture*and*Poverty*Reduction:* A*Research*Agenda’,*World)Development,*35(8),*pp.*1464–1480.* WHO*(2015)*‘Healthy*diet’,*Fact)sheet)N°394,*World*Health*Organization,*[online]*Available*from:* http://www.who.int/mediacentre/factsheets/fs394/en/*(Accessed*13*July*2015).* Zona*Sul*(2015)*‘Zona*Sul*Atende’,*Institucional,*[online]*Available*from:* http://www.zonasulatende.com.br/Quem;Somos/*(Accessed*14*July*2015).* * * ! * 177! 10. * APPENDICES&AND&ANNEXES& 10.1. Annex&1:&VCA&Data&Requirements& Table&63:&Data&requirements&used&for&value&chain&analysis&in&this&study,&when&applicable& I. • Wholesale*price*at*different*locations*(including*international*prices*CIF;*FOB,*if*any)* • Producer*price*of*the*commodity*at*different*locations* • Consumer*price*of*the*commodity*at*different*locations* • Produced*and*traded*quantities*of*the*commodity* • Location*of*the*main*markets*in*the*region*and/or*at*national*level* • Home*consumption*and*marketed*shares*of*the*produced*good,*if*any* • Numbers*of*the*actual*and*potential*consumers*in*destination*area* • Seasonality*in*prices*and*output*quantities*** II. Primary&production&process& • Prevailing*farming*or*other*production*systems*in*the*production*area* • Average*farm/firm*size*or*typology*of*representative*farms*or*firms* • Number*of*the*representative*farms*and*firms*in*the*area* • Yield*per*unit*of*activity*for*each*representative*farms/firms* • Total*production*from*each*farming*system*type*in*the*relevant*area* • Post;harvest*losses* • Output*storage*capacity*** III. Inputs&and&factors&for&primary&production& • Quantity*of*each*input*per*unit*of*output*(technical*coefficients)* • Purchase*prices*of*input*per*input*type* • Seasonality*in*prices*and*quantities*of*the*main*inputs* • Stocking*costs*of*inputs* • Packaging*and*stocking*costs*of*output* • Transportation*costs*of*inputs*from*various*locations* • Equipment,*required*investment,*facilities*and*related*depreciation* • Other*Costs* • Tariffs*and*taxes* • Labor*wages*at*various*locations* • Total*land*in*the*relevant*area* • Total*arable*land*in*the*in*the*relevant*area* • Water*resources*(types,*number,*capacity)* • Land,*water*and*other*natural*resource*use*rents*** IV. ! Output:& CollectionCtrade&of&raw&commodity& • Typology*of*representative*trading*agents* • Type*of*market*(competitive,*monopsony*etc.)*and*contractual*arrangements* 178! • Facilities*available*for*collection;trade*of*the*raw*commodity*(Storage*capacity,*specific*infrastructures*etc.)* • Transportation*costs*from*the*production*to*the*processor* • Other*transaction*costs*(informal*taxes,*losses*etc.)* • Investment*costs*for*collection;trade*and*related*depreciation* • Commodity*purchase*price*of*trader* • Commodity*sale*price*of*trader* • Trade*margins** V. Processing& • Typology*of*representative*processing*agents* • Quantity*of*commodity*processed*by*type*of*representative*processing*agent* • Purchase*price*of*raw*commodities* • Processing;conversion*coefficients*by*type*of*representative*processing*agent* • Other*processing*inputs*and*factors*by*type*of*representative*processing*agent**(technology)* • Prices*of*other*inputs*and*factors*required*in*processing* • Losses*due*to*processing* • Sale*prices*of*processed*commodities* • Storage*capacity*of*processors* • Investment*costs*and*related*depreciation*for*processing.*** VI. Wholesalers,&Exporters&and/or&Importers&of&the&processed&commodity& • Transportation*costs* • Transaction*costs* • Equipment*and*facilities*costs* • Investment*costs*and*depreciation* • Purchased*quantity* • Storage*capacity* • Purchase*price* • Sale*prices*** VII. • General&and&institutional&context& Economic*and*social*infrastructures*available*(electricity*roads,*schools,*hospitals,*markets,*communications,* etc.)* • Distance*from*production*sites*and*the*closest*infrastructure* • National*laws*and*or*international*treaties*affecting*the*value*chain* • Market*regulations*and*functioning* • Producers’*organizations*acting*in*support*to*the*value*chain* • NGOs*acting*in*support*to*the*value*chain* Retrieved) from) Bellù,) L.) G.) (2013)) Value) Chain) Analysis) for) Policy) Making) Methodological) Guidelines) and) country) cases) for) a) Quantitative) Approach) Restricted) circulation,) Food) and) Agriculture)Organization)of)the)United)Nations)* ! * ! * 179! 10.2. Annex&2:&Accounting&Definitions& Sales& revenues:& Flow* of* output* generated* by* the* production* process* and* sold* on* the* market* multiplied* by* the* unit* price.* Sales* are* measured* before* the* application* of* any* taxes* on* the* product.* Sales* exclude* all* payments* received* from* government* unless* they* are* granted* to* any* producers*undertaking*the*same*activity.** Own& Final& Use:& Products*retained*by*producers*for*personal*use*as*final*consumption*or*capital* formation.** Changes&in&inventories:&The*value*of*the*entries*into*inventories*net*of*the*value*of*withdrawals* and*of*the*value*of*any*losses*of*goods*held*in*inventories.** Total&output&value:&Sales*revenues+*Own*Final*Use*of*output*+*Changes*in*inventories.** Intermediate& inputs:& Flow* of* goods* and* services* entering* the* production* process* and* totally* consumed*during*a*production*period.** Fixed&capital&consumption:&The*loss*of*value*of*an*asset*in*a*given*period.*It*can*be*calculated*as* the*sum*of*the*discounted*expected*future*benefits*from*using*the*asset*for*its*remaining*service* life* periods,* which* is* calculated* at* the* beginning* of* the* period* net* of* the* sum* of* discounted* expected*future*benefits*at*the*end*of*the*period.** Interest&cost:&Either*the*interest*paid*on*funds*borrowed*to*purchase*the*asset*or*the*opportunity* cost*of*capital*measured*as*the*yield*obtainable*from*investing*on*the*best*alternative*asset.** Gross& Value& Added& (GVA):& The* difference* between* total* output* value* and* the* cost* of* intermediate*inputs,*before*fixed*capital*consumption.** Net&Value&Added&(NVA):&The*difference*between*total*output*value*and*the*cost*of*intermediate* inputs,*after*deducting*fixed*capital*consumption.** Production& factors& (PF):& Labour,*capital,*land,*general*public*services,*entrepreneurial*capacities* and*all*the*non;man;made*assets*the*services*of*which*contribute*to*a*production*process.** Profits& (or& losses):& NVA* net* of* the* remuneration* of* production* factors* except* entrepreneurial* capacities.)* This)entire)definition)was)retrieved)from)Bellù,)L.)G.)(2013))Value)Chain)Analysis)for)Policy)Making) Methodological) Guidelines) and) country) cases) for) a) Quantitative) Approach) Restricted) circulation,) Food)and)Agriculture)Organization)of)the)United)Nations.) Original) Source) cited) by) Bellù) (2013):) UNSTATs) et) al.) 2009:) System) of) National) Accounts) 2008.) European)Commission,)International)Monetary)Fund,)Organisation)for)Economic)CoIoperation)and) Development,)United)Nations)and)World)Bank,)New)York,)Dec.)2009. ! ! ! 180! 10.3. Appendix&1:&&Questionnaire&Horticulture&Producer& Segmento:*Produtores*de*Hortifruti*em*Nova*Friburgo& Setor:& Data:& Questionário&N°:& Local:&& MB:& & I.&Dados&Pessoais:& * Idade:* Sexo:*F**☐***M☐* Estado*civil:* Cidade*de*nascimento:* Tamanho*da*Família*(N°*de*pessoas:*casal*mais* * filhos*que*vivem*nesta*casa):* Profissão:* * * Escolaridade:* 1°Grau*incompleto*☐**********1°*Grau*completo*☐*********2°Grau*incompleto☐*************2°Grau*completo☐******** 3°Grau*incompleto☐****Nível*superior*incompleto☐* Nível*Superior*completo☐******mestrado*ou*doutorado☐*****sem*escolaridade☐* Poderia*gentilmente*informar*qual*é*a*renda*média*mensal*familiar?* obs.:*somando*todas*renda*de*todas*as*pessoas*da*casa* ☐Nenhuma*renda* ☐Até$1$salário;mínimo!(até%R$%724,00)%* ☐De*1*a*3*salários;mínimos!(de$R$$724,00$até$R$$2.172,00)* ☐De*3*a*6*salários;mínimos!(de$R$$2.172,00$até$R$$4.344,00)$* ☐De*6*a*9*salários;mínimos!(de$R$$4.344,00$até$R$$6.516,00)$* ☐De*9*a*12*salários;mínimos!(de$R$$6.516,00$até$R$$8.688,00)* ☐Mais*de*12*salários*mínimos*(mais*de*R$*8.688,00)* A*casa*que*você*e*sua*família*mora*é:* Própria☐********************Alugada****☐********Concedida☐* & II.&Dados&sobre&a&área&produtora:& * 1. Poderia*informar*qual*a*área*total*em*hectares*de*sua*propriedade?*(Favor*considerar*a*soma*total*das* propriedades*em*caso*de*possuir*mais*de*uma)* * (**)* até*5*ha** (**)* de*5*a*10*ha** (**)* de*10*a*20*ha*** (**)* de*20*a*30*ha** (**)* de*30*a*50*ha** (**)* mais*de*50*ha** * ! 181! 2. E*qual*seria*a*área*total*cultivada?* * * * 3. O(a)*senhora(a)*poderia*informar*quais*são*os*produtos*produzidos*em*sua*propriedade*e*o*rendimento* de* produtividade* da* safra* por* hectare* (ha)?* Por* favor,* usar* unidades* como* ex.* caixas* de* alface/ha,* molhos*de*cheiro*verde)* * Produto*(ex.*tomate,*alface)* Rendimento*(Unid.)/ha*por*safra* * * * * * * * * * * * * * 4. Quantos*ciclos*de*safras*foram*realizados*no*ano*passado*de*cada*produto*descrito*acima?* * Produto* Produção*anual*(em*numero*de*ciclos)* * * * * * * * * * * * * * 5. Poderia* dizer* qual* é* o* preço* pago* na* ultima* safrapor* unidade* do* produto* produzido?* (exemplo:* R$* 40,00*a*caixa*de*tomate).*Se*houve*variação,*por*favor,*especificar*o*preço*mínimo*e*máximo*por*cada* unidade*de*produto.* * Produto* unidade* Preço*(R$)*mín.* Preço*(R$)*máx.* * * * * * * * * * * * * * * * * * * * * * * * * * 6. Existe*sazonalidade*no*plantio*dos*produtos,*ou*a*produção*é*continua*durante*todo*o*ano?** Pode*ser*plantado*todo*o*ano☐*******************existe*época*certa*para*plantio☐* * 7. Qual*é*a*quantidade*em*média*de*perdas(em*%)*de*seus*produtospor*hectareem*cada*safra?* * * * 8. Qual*é*a*capacidade*máxima*de*armazenamento*(caso*haja)para*seus*produtos*em*unidades*(exemplo:* caixa,*molho,*etc.)*dentro*da*sua*propriedade?* * * 9. Assinale* abaixo* qual* é* o* tipo* de* mercado* no* qual* o(a)* senhor(a)* realiza* a* venda* de* seusprodutos.* Se* houver*mais*de*um*tipo,*por*favor,*assinalar*mais*de*um.* * (**)* Ao*Atravessador* (**)* Diretamente*no*atacado* ! 182! 1. 2. 3. 4. 5. 6. (**)* Diretamente*no*Varejo* (**)* Feira*limpa* (**)* Redes*de*Hortifrúti* (**)* Ou*em*outro*ponto*(por*favor*especificar):* * 10. Qual*é*forma*de*pagamento*aos*seus*produtos?* * (**)*Crédito* (**)*dinheiro* * III.&Dados&Econômicos:& * Qual*é*a*categoria*de*trabalho*na*sua*fazenda?*Se*houver*mais*de*uma*categoria,*por*favor,*assinalar*mais* de*um.* * (**)*Trabalho*familiar* (**)*Trabalhador*contratado*permanente* (**)*Trabalhados*contratado*temporário* * Qual*é*o*numero*total*de*trabalhadores,*contando*os*membros*da*família,*que*trabalham*na*produção?* * * * Qual*é*o*valor*pago*em*média*(salario*em*R$)*ao*trabalhador*por*dia*ou*mês(a*opção*melhor*no*seu*caso)?* * Tipo&de&trabalho& Salario&(R$)/&dia&ou&mês& Trabalho*Familiar* * Trabalhador*contratado*temporário* * Trabalhador*contratado*permanente* * * O(a)* senhor(a)* possui* instalações* próprias* de* utilização* da* propriedade* (exemplo:* poços,* lojas,* armazéns,* estábulos,*etc.)* * Sim☐**************Não*☐* * Caso*a*resposta*seja*sim,*por*favor,*especifique*na*tabela*abaixo:*cada*tipo*de*instalação,*o*número,*qual*foi* o*custo*inicial,*a*vida*útil*e*caso*exista*manutenção,*custo*dela*também.* Custo*de*manutenção*por* Tipo*de* Custo*por*unidade*de* Vida*útil* Número* tipo*de*instalação** instalação* instalação(em*R$)* (anos)* (por*ano)* * * * * * * * * * * * * * * * * Houve*financiamento*para*adquirir*as*instalações*descritas*acima?* Sim☐***********Não*☐* * O(a)* senhor(a)* possui* equipamentos* de* grande* porte* (exemplo:* tratores,* colhedoras* etc.)* que* foram* adquiridas*dentro*dos*últimos*2*anos?* Sim☐******Não*☐* * Caso*a*resposta*seja*sim,*por*favor,*especifique*cada*instalação*na*tabela*abaixo:* * * * * ! 183! 7. 8. 9. 10. 11. 12. 13. 14. 15. Tipo*de* equipamento* Numero*de* equipamentos* * * * * * * * * Custo*por* unidade*(em* R$)* * * * * Vida*útil* (anos)* Custo*de*manutenção*por*tipo*de* equipamento(ao*ano)* * * * * * * * * * Houve*financiamento*para*adquirir*os*equipamentos*descritos*acima?* Sim☐*******Não*☐* * O(a)*senhor(a)*poderia*informar*se*possui*equipamentos*de*pequeno*porte*usados*na*sua*fazenda?* * Sim☐*******Não*☐* * Caso*a*resposta*seja*sim,*por*favor,*qual*seria*a*quantidade*comprada*anualmente,*local*de*compra,*e*o* custo*(em*R$)*no*total*por*safra?* * * * O(a)*senhor(a)*poderia*informar*na*tabela*abaixo*os*seus*custos*em*insumos*(exemplo:*adubos,*defensivos* agrícolas,*calcários,*entre*outros)por*safra,*a*quantidade*comprada*e*o*local*de*compra?*(exemplo:* sementes,*inseticidas,*fertilizantes,*gasolina,*etc.)* Insumos* Quantidade*/ano* Custo*(em*R$)** Local*de*compra* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * O(a)*senhor(a)*possui*custos*operacionais*adicionais*como*por*exemplo*aluguel*da*propriedade*e/ou* instalações,*custos*com*estocagem,*transporte,*embalagens*e*royalties?* Sim☐Não*☐* * Caso*a*resposta*seja*sim,*por*favor,*especificar*o*custo*anual(R$)*com*cada*operação:* * * * Existe*sazonalidade*nos*custos*operacionais*e*na*compra*de*insumos?* Sim☐Não*☐* * O(a)*senhor*(a)*poderia*informar*qual*o*custo*anual*(R$)*em*media*com*tarifas*e*impostos*relativos*a*sua* produção?* * * * Existe*o*consumo*próprio*dos*produtos*produzidos*na*sua*fazenda?* Sim☐*****Não*☐* * O(a)*senhor(a)*participa*de*alguma*organização*de*produtores,*como*por*exemplo*cooperativa,*associação* ou*grupos?* * ! 184! Sim☐*****Não*☐* * Qual*o*nome?* * 16. Na*sua*opinião*a*associação/cooperativa*favorece*de*alguma*forma*o*produtor?Existe*algum*problema*na* organização*de*produtores?*Por*favor*relatar.* * * * 17. Qual*a*sua*satisfação*em*relação*às*medidas*de*ajuda*do*Programa*Rio*Rural*e/ou*assistência*técnica*da* EMATER*para*o*produtor*familiar,*por*favor,*assinale?* (**)insatisfeito***(***)*pouco*satisfeito****(**)*satisfeito***(**)*muito*satisfeito* * 18. Qual*é*a*maior*dificuldade*enfrentada*pelo(a)*senhor(a)*como*produtor*rural?* * * * 19. Na*sua*opinião,*qual*é*o*principal*problema*enfrentado*no*mercado*de*hortaliças*no*estado*do*Rio*de* Janeiro?* * * * * * * Muito*Obrigada*pela*sua*cooperação!*A*confidencialidade*de*suas*informações*será*mantida!* ! ! * ! * 185! 10.4. Appendix&2:&Questionnaire&Coffee&Grower& Segmento:*Produtores*de*Café*da*região*de*Varre;Sai*(Noroeste)* Setor:& Data:& Questionário&N°:& Local:&& MB:& & I.&Dados&Pessoais:& * Idade:* Sexo:*F**☐M☐* Estado*civil:* Cidade*de*nascimento:* Tamanho*da*Família*(N°*de*pessoas*casal*mais* Profissão:* filhos):* Escolaridade:* 1°Grau*incompleto*☐********1°*Grau*completo**☐*********2°Grau*incompleto☐*************2°Grau*completo☐*********** 3°*Grau*incompleto☐**************3°*Grau*completo☐mestrado*ou*doutorado☐**************sem*escolaridade☐* Poderia*gentilmente*informar*qual*é*a*renda*média*mensal*familiar?* obs.:*somando*todas*renda*de*todas*as*pessoas*da*casa* ☐Nenhuma*renda* ☐Até$1$salário$mínimo$(até$R$$724,00)$* ☐De#1#a#3#salários#mínimos#(de#R$#724,00#até#R$#2.172,00)* ☐De#3#a#6#salários#mínimos#(de#R$#2.172,00#até#R$#4.344,00)#* ☐De#6#a#9#salários#mínimos#(de#R$#4.344,00#até#R$#6.516,00)#* ☐De*9*a!12#salários#mínimos#(de#R$#6.516,00#até#R$#8.688,00)* ☐Mais*de*12*salários*mínimos*(mais*de*R$*8.688,00)* A*casa*que*você*e*sua*família*mora*é:* Própria☐********************Alugada****☐***Concedida☐* * II.&Dados&sobre&a&área&produtora:& * 11. Poderia*informar*qual*a*área*total*em*hectares*da*suapropriedade?*(Favor*considerar*a*soma*total*das* propriedades*em*caso*de*possuir*mais*de*uma)* * (**)* até*10*ha** (**)* de*10*a*50*ha** (**)* de*50*ha*120*ha* (**)* de*120*a*500*ha** (**)* acima*de*500*ha** * 12. E*qual*seria*a*área*total*cultivada*de*café*em*hectares?*Caso*não*saiba,*por*favor*informe*quantos*pés* possui*no*total*e*qual*o*espaçamento*utilizado?* * * * * ! 186! 20. 21. 22. 23. 13. Poderia*informar*qual*éo*rendimento*(sacas*60*kg)*da*produtividade*de*café*por*hectarea*cada*biênio?* * * 14. Poderia*informar*qual*é*a*produção*total*de*cafépor*biêniopelo*senhor?* * * 15. Poderia*dizer*qual*é*o*preço*pago*à*saca*de*café*em*reais?* * * 16. Existe*sazonalidade*na*produção*e*nos*preços*dos*produtos?** * Sim☐***********Não*☐***************Motivo:* * 17. Qual*é*a*quantidade*de*perdas*(em*%)*devido*a*diversos*fatorespor*safra?* * * 18. Qual*é*a*capacidade*máxima*de*armazenamento*de*café*em*unidades*de*sacas*dentro*da*sua*fazenda?* (por*quanto*tempo*e*se*influencia*no*preço)** * * 19. Qual*é*o*tipo*de*mercado*no*qual*o(a)*senhor(a)*realiza*a*venda*de*produtos?* (**)* Atravessador* (**)* Diretamente*no*atacado* (**)* Diretamente*no*Varejo* (**)*Diretamente*para*a*Torrefadora* (***)*Cooperativa* (**)* Ou*em*outro*ponto*(por*favor*especificar):* * 20. Qual*é*forma*de*pagamento*aos*seus*produtos?* * (**)*Crédito* (**)*dinheiro* * III.&Dados&Econômicos:* * Qual*é*a*categoria*de*trabalho*na*sua*fazenda?* (**)*Trabalho*familiar* (**)*Trabalhador*contratado*permanente* (**)*Trabalhados*contratado*temporário* (**)*Meeiro*** * Qual*é*o*numero*total*de*trabalhadores*contando*os*membros*da*família*que*trabalham*na*fazenda?* * * Qual*é*o*valor*pago*em*média*(salario*em*R$)*ao*trabalhador*por*mês*e/ou*colheita?* * Tipo&de&trabalho& Salario&(R$)& Trabalhador*contratado*temporário* * Trabalhador*contratado*permanente* * * O(a)* senhor(a)* possui* instalações* próprias* de* utilização* da* fazenda* (exemplo:* poços,* lojas,* armazéns,* estábulos,*etc.)* * Sim☐*******Não*☐* Caso*a*resposta*seja*sim,*por*favor*especifique*cada*instalação*na*tabela*descrita*abaixo:* * ! 187! Tipo*de* instalação* * * * * Numero* * * * * Custo*por*unidade*de* instalação(em*R$)* * * * * Vida*útil* (anos)* * * * * Custo*de*manutenção*por* tipo*de*instalação*(por*ano)* * * * * * 24. Houve*financiamento*para*adquirir*as*instalações*descritas*acima?* Sim☐************Não*☐* * 25. O(a)*senhor(a)*possui*equipamentos*de*grande*porte*(exemplo:*tratores,*colhedoras*etc.)?* Sim☐***********Não*☐* * Caso*a*resposta*seja*sim,*por*favor*especifique*cada*instalação*na*tabela*descrita*abaixo:* Custo*por* Tipo*de* Numero*de* Vida*útil* Custo*de*manutenção*por*tipo*de* unidade*(em* equipamento* equipamentos* (anos)* equipamento(ao*ano)* R$)* * * * * * * * * * * * 26. Houve*financiamento*para*adquirir*os*equipamentos*descritos*acima?* Sim☐**********Não*☐* * 27. O(a)*senhor(a)*poderia*informar*se*possui*equipamentos*de*pequeno*porte*usados*na*sua*fazenda?* * Sim☐**********Não*☐* * 28. Caso*a*resposta*seja*sim,*por*favor*qual*seria*a*quantidade*comprada*anualmente,*local*de*compra,*e*o* custo*(em*R$)*por*ano?* * Custo*por* Tipo*de* Numero*de* Vida*útil* Custo*de*manutenção*por*tipo*de* unidade*(em* equipamento* equipamentos* (anos)* equipamento(ao*ano)* R$)* * * * * * * * * * * * * * * * * 29. O(a)*senhor(a)*poderia*informar*na*tabela*abaixo*os*seus*custos*em*insumos*anuais,*a*quantidade* comprada*e*o*local*de*compra?*(exemplo:*sementes,*inseticidas,*fertilizantes,*gasolina,*etc)* Insumos* Quantidade*/ano* Custo*(em*R$)*por*ano* Local*de*compra* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 30. O(a)*senhor(a)*possui*custos*operacionais*adicionais*como*por*exemplo*aluguel*da*propriedade*e/ou* instalações,*custos*com*serviços*adicionais,*custos*com*estocagem,*transporte,*embalagens*e*royalties?* Sim☐**************Não*☐* * Caso*a*resposta*seja*sim*por*favor*especificar*o*custo*anual(R$)*com*cada*operação:* * * 31. Existe*sazonalidade*nos*custos*operacionais*e*na*compra*de*insumos?* ! 188! 32. 33. 34. 35. 36. Sim☐**************Não*☐* * O(a)*senhor*(a)*poderia*informar*qual*o*custo*anual*(R$)*com*tarifas*e*impostos*relativos*a*sua*produção?* * * * Existe*o*consumo*próprio*dos*produtos*produzidos*na*sua*fazenda?* Sim☐************Não*☐* * O(a)*senhor(a)*participa*de*alguma*organização*de*produtores,*como*por*exemplo*cooperativa,*associação* ou*grupos?* Sim☐*************Não*☐* Qual*o*nome?* * Na*sua*opinião*existe*algum*problema*na*organização*de*produtores?*Por*favor*relatar.* * * * Qual*a*sua*satisfação*em*relação*às*medidas*de*ajuda*do*Programa*Rio*Rural*e/ou*assistência*técnica*da* EMATER*para*o*produtor*familiar?* * * * 18.**Na*sua*opinião,*qual*é*o*maior*problema*que*dificulta*o*mercado*do*café*no*estado*do*Rio*de*Janeiro?* * * * Muito*Obrigada*pela*sua*cooperação!*A*confidencialidade*de*suas*informações*será*mantida!* * * ! 189! 10.5. Appendix&3:&Questionnaire&Coffee&Roaster& Segmento:*Processamento*de*café*(Torrefadoras)*na*região*de*Varre*Sai* Setor:& Data:& Questionário&N°:& Local:&& Tipo:& ! 1. Qual*é*o*tipo*de*empresa*processadora*de*café?* (**)*Torrefadora* (**)*Solubilizadora* (**)*ambos* (**)*outra.*Especifique:* * 2. Como*o*(a)*senhor(a)*considera*o*tipo*de*Mercado*de*café,*considerando*a*compra*de*grão*cru*de*café,*na* região*noroeste*do*Estado*do*Rio*de*Janeiro?* * (**)*Existem*muitos*compradores*e*a*concorrência*é*alta* (**)*Somente*há*um*comprador* (**)*Existem*poucos*compradores* (**)*outro,*especificar:* * 3. Qual*é*o*maior*mercado*consumidor*desta*empresa?* * * * 4. Existe*algum*tipo*de*acordo*contratual*pré;estabelecido*entre*os*compradores*e*as*empresas*torrefadoras?* (**)*Sim************************(**)*Não* * 5. Qual*é*em*média*o*volume*de*grãos*(em*sacas)*processado*anualmente*por*esta*empresa?* * * * 6. Qual*é*o*preço*(R$)*pago*normalmente*à*saca*de*café*cru?* * * * 7. Quais*os*tipos*de*produtos*produzidos*pela*empresa?* * * * 8. Qual*é*o*preço*(R$)*de*venda*do*café*já*processado*para*cada*tipo*de*produto*produzido?* * * * 9. Em*média*qual*é*o*custo(R$)*de*produção*por*unidade*de*produto*já*processado?* * * * 10. Qual*é*o*insumo*de*maior*custo*(R$)*para*esta*empresa?* * * * 11. Qual*é*o*volume*de*café*processado*vendido*por*esta*empresa*ao*mês?* ! 190! * * * 12. Qual*o*volume*de*perdas*devido*ao*processamento*em*reais*por*mês?* * * * 13. Qual*é*a*capacidade*de*armazenamento*no*mês*de*matéria*prima?* * * * 14. O(a)*senhor(a)*poderia*gentilmente*nos*ajudar*a*realizar*a*pesquisa*sobre*valor*agregado*nos*informando,* por*favor*os*custos*médios(R$)**e*investimentos*da*empresa*de*torrefação/solubilização?*Basta*completar*a* tabela*com*dados*aproximados.** * Obs:*Caso*não*se*aplique,*não*há*necessidade*de*preenchimento.* * Despesas*fixas* Numero(unidade)* Custo*(R$)*investimento* mobiliário* * * equipamentos* * * automóveis* * * Instalações*prediais* * * * Serviços*pagos* Custo*(R$)*ao*mês* Remuneração*de*técnicos* * Remuneração*de*funcionários* * Conta*de*água*luz*e*outros* * Honorário*contador* * Manutenção*de*equipamentos* * Impostos*e*taxas* * Outras*despesas* * * Compra*matéria;prima* Valor*(R$)* Café*em*sacas*de*café*cru* * Impostos*sobre*o*café* * * 15. Qual*é*a*maior*dificuldade*enfrentada*pelo*senhor*no*processamento*de*café*no*estado*do*Rio*de* Janeiro?* * * * 16. *Na*sua*opinião*qual*é*a*maior*dificuldade*para*o*Rio*de*Janeiro*no*mercado*de*café?* * * * Muito*obrigada*pela*sua*cooperação!*As*informações*aqui*apresentadas*serão*mantidas*de*forma* confidencial!* * ! * 191! 10.6. Appendix&4:&Questionnaire&Coffee&Broker& Segmento:*Processamento*de*café*(Torrefadoras)*na*região*de*Varre*Sai* Setor:& Data:& Questionário&N°:& Local:&& * 1. Tipo:& O*(a)*senhor(a)*se*considera*em*qual*tipo*de*agente*comercial?* * (**)*Atravessador* (**)*Agente*financeiro* (**)**Atacadista* (**)*Varejista* (**)*Agroindústria* (**)*Transportador* (**)*Cooperativa* * 2. Como*o*(a)*senhor(a)*considera*o*tipo*de*Mercado*de*café,*considerando*a*compra*de*grão*cru*de*café,*na* região*noroeste*do*Estado*do*Rio*de*Janeiro?* * (**)*Existem*muitos*compradores*e*a*concorrência*é*alta* (**)*Somente*há*um*comprador* (**)*Existem*poucos*compradores* (**)*outro,*especificar:* * 3. Existe*algum*tipo*de*acordo*contratual*pré;estabelecido*entre*os*compradores*e*os*produtores,*e/ou*entre* os*compradores*e*as*empresas*torrefadoras?* (**)*Sim************************(**)*Não* * 4. Qual*é*o*destino*mais*comum*da*matéria;prima*vendida*pelo(a)*senhor*(a)?* * * * 5. O(a)*senhor(a)*possui*algum*tipo*de*instalação*para*a*coleta*e*comercio*de*matéria;prima,*como*exemplo,* armazém*ou*outras*estruturas*especificas?*Aluguel*de*instalação?** * * * 6. Qual*a*sua*capacidade*máxima*de*armazenamento?* * * * 7. Qual*o*custo*das*instalações*adquiridas*e*ha*quanto*tempo*as*possui?* * * * 8. O(a)*senhor(a)*tem*algum*custo*com*transporte*do*grão*de*café*até*a*torrefadora?*Se*sim*qual*é* aproximadamente*o*custo*mensal*com*transporte*(pedágio,*frete,*combustível,*entre*outros)?* * (**)*Sim********(**)*Não**********custo(R$):** * 9. Existe*algum*custo*de*transação,*como*por*exemplo*impostos,*e*perdas*de*grãos*devido*a*vários*fatores?* Poderia*informar*aproximadamente*o*custo*mensal?* * ! 192! * * * 10. *O(a)*senhora(a)*poderia*nos*informar,*caso*se*aplique,*o*custo*aproximado*de*investimentos*realizados*nos* últimos*5*anos,*como*por*exemplo*em*uma*instalação*ou*compra*de*automóvel,*para*o*comercio*de*café?* * * * * 11. Por*quanto*(R$)*o(a)*senhor(a)*compra*a*saca*de*grãos*crus*de*café?* * * * 12. *Qual*é*a*quantidade*comprada*aproximadamente*em*sacas*de*café*por*ano*pelo(a)*senhor(a)?* * * * 13. Existe*sazonalidade*nos*preços?*Se*sim*qual*a*frequência?* * (**)*Sim********(**)*Não**********frequência:** * 14. Qual*é*o*preço*de*venda*normalmente*às*industrias*torrefadoras*ou*à*outro*comprador/exportador?* * * * 15. Qual*é*o*volume*aproximado*vendido*por*ano*de*sacas*de*café*pelo(a)*senhor(a)?* * * * 16. Existe*alguma*taxa*ou*imposto*sobre*o*produto?*Se*sim,*quanto*seria*aproximadamente*em*reais?* * (**)*Sim***************(**)*Não***********Valor*aproximado*(R$):* * 17. Qual*é*a*maior*dificuldade*enfrentada*na*compra*e*venda*de*café*pelo*senhor?* * * * * 18. Na*sua*opinião,*qual*o*maior*problema*no*mercado*de*café*do*estado*do*Rio*de*Janeiro?* * ! * 193! 10.7. Appendix&5:&Questionnaire&CEASA&Trader& Segmento:*Atacadistas,*Varejistas,*Feirantes,*Comerciantes,*Exportadores*e*Importadores* Setor:& Data:& Questionário&N°:& Local:& * 1; Cidade:& O(a)*senhor(a)*vende*algum*dos*produtos*listados*abaixo?* Alface* Sim* Não* Acelga* Sim* Não* Salsa* Sim* Não* Couve;flor* Sim* Não* Tomate* Sim* Não* Vagem* Sim* Não* Beterraba* Sim* Não* * 2; Destes*produtos*quais*são*provenientes*da*região*serrana*de*Nova*Friburgo?* Alface* Sim* Não* Acelga* Sim* Não* Salsa* Sim* Não* Couve;flor* Sim* Não* Tomate* Sim* Não* Vagem* Sim* Não* Beterraba* Sim* Não* * 3; Qual*é*a*quantidade*comprada*mensalmente*dos*produtos*por*unidade*(ex.:*caixas*de*tomate,*molhos* de*cheiro*verde)*listados*abaixo?* Produto* Quantidade*comprada* Unidade* Alface* * * Acelga* * * Salsa* * * Couve;flor* * * Tomate* * * Vagem* * * Beterraba* * * * 4; Qual*é*o*Preço*(em*reais*R$)*de*venda*por*unidade*dos*produtos*listados*abaixo?* Produto* Mínimo*(R$)* Máximo*(R$)* Alface* * * Acelga* * * Salsa* * * Couve;flor* * * Tomate* * * Vagem* * * Beterraba* * * * 5; Existe*sazonalidade*dos*preços?*Qual*é*o*maior*motivo*do*aumento*e*queda*de*preços?** (**)*Sim*********(**)**Não*******Motivo:* ! 194! 6; O*(a)*senhor*(a)*poderia*nos*dizer*qual*é*o*preço*(em*reais*R$)*pago*pelo(a)*senhor(a)*na*compra*desses* produtos?* Produto* Mínimo*(R$)* Máximo*(R$)* Alface* * * Acelga* * * Salsa* * * Couve;flor* * * Tomate* * * Vagem* * * Beterraba* * * * 7; Aproximadamente*qual*a*quantidade*de*perdas*(em*unidades*ou*%)*de*produtos*não*vendidos*ou*por* terem*perecido*no*dia?* * * 8; O(a)*senhor(a)*tem*algum*custo*de*transporte*(incluindo*pedágio,*combustível,*ou*propriedade*de*um* caminhão*ou*carro)*para*suas*mercadorias?* * Sim☐**********************************************Não☐* * Se*sim*qual*o*valor*pago*em*reais*(R$)*por*dia?* * a; Pedágio:* b; Combustível:* c; Caminhão*ou*carro*(dizer*o*valor*do*automóvel*e*a*quanto*tempo*possui*o*automóvel):* *******d;*frete:* * 9; O*(a)*senhor(a)*tem*algum*custo*de*transação*(exemplo*impostos,*IOF,*ICMS)*para*compra*ou*venda*de* suas*mercadorias?*Se*sim*quanto*por*unidade*de*produto?* * Sim*☐**************Não*☐***Quanto*(R$)*p/*unidade:* * 10; O(a)* senhor(a)* possui* algum* equipamento* e/ou* instalações* (exemplo:* câmara* frigorifica,* etc.)* para* o* armazenamento*de*seus*produtos?* Sim*☐**********************************************Não*☐* * Se* sim,* qual* foi* o* investimento* na* instalação* e* qual* é* o* custo* mensal* em* média* (R$)* respectivo* para* mantimento* (exemplo:* energia,* aluguel)* e* manutenção* (técnicos* para* reparação)* dos* seus* equipamentos* e/ou*instalações?* * * 11; Qual*a*capacidade*máxima*de*armazenamento*(em*unidades*de*produto)*pra*as*suas*mercadorias?* * * 12; O(a)*senhor(a)*fez*algum*investimento*para*o*seu*negócio?* Sim*☐**********************************************Não*☐* * Se*sim,*poderia*nos*informar*aproximadamente*o*valor*(R$)*do*seu*investimento,*se*foi*empréstimo,*e*à* quanto*tempo*foi*feito?*(exemplo:*compra*de*um*caminhão,*etc)* * * 13; Quem*são*seus*consumidores?*Varejistas,*supermercados*ou*outros?* * * ! 195! 14; Qual*é*a*maior*dificuldade*que*o(a)*senhor(a)*enfrenta*em*geral*no*seu*trabalho?* * * * 15; Qual*é*a*sua*satisfação*com*esta*unidade*do*CEASA*no*estado*do*Rio*de*Janeiro*e*porque?* * * * 16; Na*sua*opinião*o*que*poderia*ser*melhorado*na*comercialização*de*produtos*agrícolas*no*estado*do*Rio* de*Janeiro,*algum*problema*em*especifico?* * * * Muito*obrigada*pela*sua*ajuda!* Sua*confidencialidade*será*mantida!* ! ! ! 196! 10.8. Appendix&6:&Questionnaire&Middleman&and&Distributor&(Horticulture)& Segmento:*Recolhimento*e*comércio*de*produtos*hortifrúti*em*Nova*Friburgo* Setor:& Data:& Questionário&N°:& Local:&& Tipo:& 17. *O*(a)*senhor(a)*se*considera*qual*tipo*de*agente*comercial?* * (**)*comprador/*vendedor*intermediário* (**)*Agente*financeiro* (**)*Atacadista* (**)*Varejista* (**)*Agroindústria* (**)*Transportador* (**)*Cooperativa* * 18. Como*o*(a)*senhor(a)*considera*o*tipo*de*Mercado*de*produtos*hortifrúti*na*região*serrana*do*Estado*do*Rio* de*Janeiro?* * (**)*Existem*muitos*compradores*e*a*concorrência*é*alta* (**)*Somente*há*um*comprador* (**)*Existem*poucos*compradores* (**)*outro,*especificar:* * 19. Existe*algum*tipo*de*acordo*contratual*pré;estabelecido*entre*os*compradores*e*os*produtores,*e/ou*entre*os* compradores*e*outras*empresas?*Se*sim,*por*favor,*relate*qual*é*a*condição.* * (**)*Sim************************(**)*Não* Condição:* * 20. Qual*é*o*destino*(mercado*consumidor)*mais*comum*da*matéria;prima*vendida*pelo*(a)*senhor*(a)?* * * * 21. O*(a)*senhor*(a)*possui*algum*tipo*de*instalação*para*a*coleta*e*comercio*de*matéria;prima,*como*exemplo,* armazém*ou*outras*estruturas*específicas?*Por*favor,*descrever*cada*uma.* * * * 22. Qual*a*sua*capacidade*máxima*(em*unidades*ex.*caixas*de*tomate)*de*armazenamento*ao*por*dia?* * 23. Poderia*informar*qual*é*o*custo*das*instalações*adquiridas*e*há*quanto*tempo*as*possui?* * * * 24. O(a)*senhor(a)*tem*algum*custo*com*transporte*de*produtos*hortifrúti*desde*o*produtor*até*o*destino*final?* Se*sim*qual*é*aproximadamente*o*custo*mensal*com*transporte*como,*por*exemplo,*pedágio,*frete,* combustível?* * (**)*Sim********(**)*Não**********custo(R$):** 25. Existe*algum*custo*de*transação,*como*por*exemplo,*impostos,*e*perdas*devido*a*vários*fatores?*Poderia* informar*aproximadamente*o*custo*mensal?* * * ! 197! * * 26. O*(a)*senhora*(a)*poderia*nos*informar,*caso*se*aplique,*o*valor*(R$)*aproximado*de*investimentos*realizados* nos*últimos*5*anos,*como*por*exemplo*em*uma*instalação*ou*compra*de*automóvel?* * * * * 27. Qual*é*a*quantidade*comprada*(em*unidades,*ex.:*caixas)*semanalmente*dos*produtores*dos*produtos* listados*abaixo?* Produto* Quantidade*comprada* Unidade*(molho,*caixa)* Alface* * * Acelga* * * Salsa* * * Couve;flor* * * Tomate* * * Vagem* * * Beterraba* * * * 28. O(a)*senhor(a)*poderia*nos*dizer*qual*é*o*preço*(em*reais*R$)*pago*pelo(a)*senhor(a)*na*compra*desses* produtos*por*unidade?* Produto* Mínimo*(R$)* Máximo*(R$)* Alface* * * Acelga* * * Salsa* * * Couve;flor* * * Tomate* * * Vagem* * * * 29. Qual*é*o*Preço*(em*reais*R$)*de*venda*pelo*(a)*senhor*(a)*ao*mercado*seguinte,*por*unidade*dos*produtos* listados*abaixo?* Produto* Preço*de*venda*(R$)* Unidade*(caixa)* Alface* * * Acelga* * * Salsa* * * Couve;flor* * * Tomate* * * Vagem* * * Beterraba* * * * * 30. Existe*sazonalidade*nos*preços?*Qual*é*o*maior*motivo*da*flutuação*nos*preços?* (**)*Sim********(**)*Não*************************************Motivo:* * 31. Qual*é*o*volume*aproximado*vendido*por*ano*dos*produtos*listados*abaixo,*pelo(a)*senhor(a)?* Produto* Quantidade*vendida* Unidade*(caixa)* Alface* * * Acelga* * * Salsa* * * Couve;flor* * * Tomate* * * Vagem* * * Beterraba* * * * ! 198! 32. Existe*alguma*taxa*ou*imposto*sobre*o*produto?*Se*sim,*quanto*seria*por*unidade*de*produto* aproximadamente?* * (**)*Sim***************(**)*Não***********Valor*aproximado*(R$):* * 33. Qual*é*a*maior*dificuldade*enfrentada*no*seu*trabalho?* * * * 34. Na*sua*opinião,*qual*é*o*maior*problema*no*comércio*de*produtos*hortifrúti*no*Estado*do*Rio*de*Janeiro?** * * * * * Muito*Obrigada*pela*sua*cooperação!** A*confidencialidade*de*suas*informações*será*mantida!* * * ! 199! 10.9. Appendix&7:&Questionnaire&Mini&Processing&Plant& Segmento:*Processamento*de*hortifrúti*na*região*serrana* Setor:& Data:& Questionário&N°:& Local:&& Tipo:& * * 35. Qual*é*categoria*desta*empresa*processadora*de*hortifrúti?* (**)*Agroindústria* (**)*Merenda*escolar* (**)*Mini;processados* (**)*outra.*Especifique:* * 36. Como*o*(a)*senhor*(a)*considera*o*tipo*de*mercado*de*hortifrúti*na*região*Serrana*do*Estado*do*Rio*de* Janeiro?* * (**)*Existem*muitos*compradores*e*a*concorrência*é*alta* (**)*Somente*há*um*comprador* (**)*Existem*poucos*compradores* (**)*outro,*especificar:* * 37. Qual*é*o*maior*mercado*consumidor*desta*empresa?* * * 38. Existe*algum*tipo*de*acordo*contratual*pré;estabelecido*entre*os*atravessadores*e*a*agroindústria?*Qual*a* categoria?* * (**)*Sim************************(**)*Não*************************categoria:* * 39. Qual*é*em*média*o*volume*(em*unidades,*ex.*caixas*de*tomate)*de*produtos*hortifrúti*processados* diariamente*por*esta*empresa?* * * * 40. Qual*é*o*preço*(R$)*de*compra*normalmente*aos*produtos*listados*baixo?* * Produto* Quantidade*comprada*(caixas,*molhos)* Preço*R$* Alface* * * Acelga* * * Salsa* * * Couve;flor* * * Tomate* * * Vagem* * * Beterraba* * * * 41. Quais*os*tipos*de*produtos*produzidos*pela*empresa?* * * * * * 42. Em*média*qual*é*o*custo*(R$)*e*o*preço*de*venda*(R$)*por*unidade*de*produto*já*processado*dos*produtos* fabricados*por*esta?* ! 200! * Produto* Custo*por*unidade*(R$)* Preço*vendido*R$* * * * * * * * * * * * * * * * * * * * * * * 43. Qual*é*o*insumo*de*maior*custo*(R$)*para*esta*empresa?* * * * 44. Qual*é*o*volume*de*produtos*vendidos*por*esta*empresa*ao*dia?* * * * 45. Qual*o*volume*de*perdas*devido*ao*processamento*(em*%)*por*dia?* * * * 46. Qual*é*a*capacidade*de*armazenamento*no*dia*de*matéria*prima?* * * * 47. O(a)*senhor(a)*poderia*gentilmente*nos*ajudar*a*realizar*a*pesquisa*informando,*por*favor*os*custos* médios(R$)**e*investimentos*da*empresa*de*processamento?*Basta*completar*a*tabela*com*dados* aproximados.*Caso*não*se*aplique,*não*há*necessidade*de*preenchimento.* * Despesas*fixas* Numero(unidade)* Custo*(R$)*investimento* mobiliário* * * equipamentos* * * automóveis* * * Instalações*prediais* * * * Serviços*pagos* Custo*(R$)*ao*mês* Remuneração*do*proprietário* * Remuneração*de*técnicos* * Remuneração*de*funcionários* * Conta*de*água*luz*e*outros* * Depreciação*dos*investimentos*fixos* * Honorário*contador* * Manutenção*de*equipamentos* * Impostos*e*taxas* * Outras*despesas* * * Compra*matéria;prima* Valor*(R$)* Produtos*Hortifrúti* * Impostos*sobre*o*café* * * * Muito*obrigada*pela*sua*cooperação!*As*informações*aqui*apresentadas*serão*mantidas*de*forma* confidencial!* * * ! 201! 10.10. Appendix&8:&José&Ferreira&(COOPERCANOL)&Interview&Transcript& Perguntas&ao&Zé&Ferreira& & Sobre&a&COOPERCANOL&& * P:&Há&Quanto&Tempo&existe&essas&organizações?& R:) A) COOPERCANOl) foi) fundada) em) 1977) e) a) FAVS) em) 1994,) que) era) na) verdade) a) Federação) das) Associações)de)Varre)Sai.) * P:&Qual&é&Objetivo?& R:)O)objetivo)é)agregar)valor)ao)café,)venda)de)insumos,)beneficio)do)agricultor,)comprar)café)a)um)preço) mais)justo,)regularizar)o)preço)do)café)na)região,)beneficiais,)melhorar)a)qualidade)de)café,)apoio)técnico,) padronizar)o)café,)fazer)o)lote,)pois)pequeno)é)difícil)de)vender)o)café)dele)(pouco))de)qualidade,)nivelar)o) grande)e)o)pequeno)produtor) * P:&qual&o&numero&de&beneficiários&que&pretende&englobar?& R:) Atualmente) existem) 120) associados,) mas) poderia) englobar) todos) os) produtores) do) estado) do) Rio,) não) possui)fronteiras) * P:&Porque&ficou&desativada?* R:) Problema) politico) e) ficou) nas) mãos) de) poucos.) Faltou) recurso) para) capitalizar) e) continuar) a) obra.) Recentemente)existem)novos)associados)para)tocar)e)conseguiram)reativar.)Os)produtores)tem)que)creditar,) vai)concretizar)quando)funcionar)mesmo,)geralmente)não)dá)certo)pelos)próprios)produtores)e)gente)com) interesse)próprio.) * P:&Qual&foi&o&investimento&atual?&E&Apoio&Institucional?& R:)Recurso)do)BNDS)R$)1.499.310,00).)Recurso)próprio)mais)100)mil)dos)associados.)) * P:&qual&será&a&entrada&de&volume&de&café&cru?& R:)20)mil)sacas)de)inicio,)100)mil)(50%))fatia)produzida)na)região.) * P:&Qual&será&o&mercado&consumidor?& R:)Mercado)interno)e)exportação)(o)mais)rápido)possível).)Existe)a)possibilidade)de)exportar)para)a)China)só) o)grão)beneficiado.)A)Cooperativa)vai)rebenificiar)o)café:)que)é)selecionar)o)café)de)qualidade,)vai)para)a) exportação) e) o) resíduo) para) o) mercado) interno.) Separar) o) grão) em) tamanho) de) fava,) por) cor,) retira) impurezas)e)defeitos.* * P:&Qual&será&o&custo&por&unidade&de&café&beneficiado?& R:)1kg)de)café)por)saca)para)cobrir)despesas)de)manutenção)da)cooperativa) * P:&Quais&são&os&requisitos¶&associarCse?& R:)tem)que)ser)produtor,)a)quota)está)a)definir,)mas)a)intenção)é)facilitar)a)entrada)do)produtor.) * P:&Qual&seria&os&preços&de&compra&e&venda?& R:) A) cooperativa) garantirá) o) melhor) preço.) Existe) a) garantia) do) governo) (mas) não) necessariamente) irá) conseguir).)Para)não)inviabilizar)o)produtor.)Vai)ter)mais)recurso,)facilidade)de)atingir)os)mercados.)Para)a) venda)existe)uma)porcentagem)em)cima)da)venda,)mas)ainda)não)está)definido.* * P:&Quais&são&os&entraves&e&dificuldades¶&os&produtores&na&comercializacao?& R:) Produtores) tem) muita) coisa) contra) ele:) o) tempo,) clima,) medidas) do) governo) que) acabam) chegando) atrasado)para)solucionar)os)problemas.) O)melhor)seria)existir)uma)Politica)de)regularizar)o)mercado)e)Proteção)ao)excesso)de)produção.)IBC)extinto) em)1990)e)falta)um)órgão)regulador.) ) ) ! 202! 10.11. Appendix&9:&Photos&fieldwork&Coffee&chain& Figure&77:&&Milled&coffee&bags&(left);&Milling&process&(right)& & ! Figure&78:&Coffee&brands&of&VarreCSai& * ! ! Figure&79:&COOPERCANOL’s&processing&installation&(left);&COGEM&meeting&in&Itaperuna&(right)& Figure&80:&Concrete&yards&for&drying&coffee&(left);&Coffee&bush&about&to&ripen&(right)& ! *Note:*Own*photos* ! & & * 203! 10.12. Appendix&10:&Photos&fieldwork&Horticulture&chain& * Figure&81:&Tomato&harvesting&(left);&boxed&tomatoes&(right)& & Figure&82:&Agroecology&transition&in&tomatoes&(left);&Lettuce&ready&to&distribution&(right)&& & Figure&83:&Biological&beetroot&(left);&Hydroponic&lettuce&(right)& * Figure&84:&COGEM&meeting&in&Rio&Grande&Community&(left);&“Empty”&Mercado&do&Produtor&(right)& *Note:*Own*photos ! 204! 6.8$ 4.1$ 3.5$ Serra,Nova,e,Serra,Velha, MB3, MB4, ! 3$ 2,280.00$ 825.00$ Castor,compost, 7,100.76$ 6,671.86$ 7,815.60$ 12,962.46$ 11,437.47$ 4,193.74$ 6,290.61$ 4,574.99$ 2,859.37$ Fertilizer, 57.00$ Bordeaux,mix, 7,365.62$ 6,920.72$ 8,107.13$ 13,445.97$ 11,864.09$ 4,350.17$ 6,525.25$ 4,745.64$ 2,966.02$ Pesticide, , Biological, pesticides, 744.50$ 3,298.30$ 3,099.07$ 3,630.34$ 6,021.06$ 5,312.70$ 1,947.99$ 2,921.98$ 2,125.08$ 1,328.17$ Packing, 237.86$ 223.49$ 261.80$ 434.21$ 383.13$ 140.48$ 210.72$ 153.25$ 95.78$ Micro, Nutrients, , 2,075.63$ 1,950.26$ 2,284.59$ 3,789.08$ 3,343.30$ 1,225.88$ 1,838.82$ 1,337.32$ 835.83$ Limestone, , 2,252.24$ 2,116.20$ 2,478.98$ 4,111.48$ 3,627.78$ 1,330.18$ 1,995.28$ 1,451.11$ 906.94$ Fuel, , 4,533.00$ 4,259.19$ 4,989.34$ 8,275.01$ 7,301.48$ 2,677.21$ 4,015.81$ 2,920.59$ 1,825.37$ Seedling, Total,IIOC, 33,600.59$ 31,571.02$ 36,983.20$ 61,337.99$ 54,121.75$ 19,844.64$ 29,766.96$ 21,648.70$ 13,530.44$ Total,IIOC, 3,906.50$ $ Note:$The$total$intermediate$input$costs$were$obtained$through$a$homogenization$of$the$acquired$data,$in$terms$of$total$cost$per$hectare$for$each$input.$The$total$cost$per$hectare$was$then$ scaled$up$to$represent$the$cost$of$a$representative$producer$by$community$or$by$microHbasin.$Organic$producers$were$accounted$separately.$ $ Organic,Producers, , 6,330.23$ 7,415.41$ 12,298.72$ 10,851.82$ Organic,compost, 6$ Santa,Cruz, 3,979.00$ Ha, 2.2$ Salinas, 5,968.50$ 6,737.17$ 3.3$ Rio,Grande, 4,340.73$ 2,712.95$ Manure, 3.725$ 2.4$ Florândia,da,Serra, Average,conventional,Producer, 1.5$ Average,ha, Barracão,dos,Mendes, Representative, Table,64:,IIOC,–,Intermediate,input,costs,in,Value,chain,B,in,total,Reais,(R$),for,each,representative,producer,of,community,and,or,microIbasin, 10.13. Appendix,11:,Intermediate,input,costs,of,farmers,in,Value,Chain,B, ! ,! Specialized,retail,distributor, ! R$47,784.00! R$33,408.00! R$8,688.00! R$8,688.00! R$8,688.00! ! ,! R$794.40! R$1,083.86! ,! ,! ,! R$2,172.00! R$2,163.43! ,! ,! ! ,! ,! ,! ,! ,! ! R$1,800.00! R$2,273.33! R$1,899.29! R$5,150.00! R$7,200.00! R$3,100.00! ,! R$257.14! R$440.00! R$6,900.00! ! R$7,645.44! R$5,345.28! R$1,390.08! R$1,390.08! R$1,390.08! ! R$5,560.32! R$6,795.11! R$6,139.52! R$8,585.89! R$8,690.08! R$8,481.71! R$6,672.80! R$6,518.67! R$6,674.05! R$4,692.56! R$3,966.07! R$2,772.86! R$721.10! R$721.10! R$721.10! ! R$2,884.42! R$3,524.97! R$3,184.88! R$4,453.93! R$4,507.98! R$4,399.89! R$3,461.52! R$3,381.56! R$3,462.16! R$2,434.27! ! 13°,Wage, R$1,308.80! R$915.05! R$237.96! R$237.96! R$237.96! ! R$951.86! R$1,163.24! R$1,051.01! R$1,469.80! R$1,487.63! R$1,451.96! R$1,142.30! R$1,115.92! R$1,142.51! R$803.31! ! Vacation, ,! ,! ,! ,! ,! ! R$221.40! R$279.62! R$233.61! R$633.45! R$885.60! R$381.30! ,! R$31.63! R$54.12! R$848.70! ! Temporary,worker,fess, R$60,704.32! R$42,441.19! R$11,037.15! R$11,037.15! R$11,037.15! ! R$46,169.99! R$56,505.74! R$50,880.31! R$73,954.91! R$77,084.29! R$70,825.52! R$52,981.61! R$52,046.64! R$53,485.64! R$45,007.33! ! Total, ! Base!calculation!at!minimum!wage!R$!724.00!(2014),!family!work!as!opportunity!cost,!trader!as!a!hired!opportunity!cost.!Account!according!to!legislation!Law!No.!5.889/73,!Decree!No.! 73.626/74!(Brasil!,!Casa!Civil,!1973,!1974)! ! ! ,! R$34,752.00! Organic, Mini2processing, R$41,675.07! Conventional,producer, ,! R$37,288.15! MB4, ,! R$53,661.83! MB3, Middlemen, R$54,313.00! Santa,Cruz, Small,Wholesaler, R$53,010.67! Salinas, ,! R$39,533.00! Serra,Nova,e,Serra,Velha, CEASA,trader, R$38,578.29! Rio,Grande, ! R$41,712.80! Florândia,da,Serra, Upstream,level, R$29,328.50! ! Family,work, Hired,employee, Temporary,employee, Social,and,Labor,charges, Barracão,dos,Mendes, Producer,level, Representative, Table,65:,Wage,account,in,the,Value,Chain,horticulture, 10.14. Appendix,12:,Wage,2,Value,Chain,B, ! R$53,485.64! R$52,046.64! R$73,954.91! R$50,880.31! R$48,919.04! R$55,611.59! R$116,695.53! R$59,312.93! R$14,500.42! R$47,693.63! R$73,918.10! R$61,915.56! R$51,534.65! ! R$277,692.00! R$27,163.37! R$48,699.50! R$953,941.00! Florândia,da,Serra, Rio,Grande, Serra,Nova,e,Serra, Velha, Salinas, Santa,Cruz, MB3, MB4, Average,conventional, Producer, Organic,Producers, Upstream,level, CEASA,trader, Small,wholesale,trader, Middleman, Mini2processing, ! Specialized,retailer, R$1,136,887.50! R$60,704.32! distributor, Profit'='NVA'–'production'factors!(Wage,!Interests,!Taxes,!Rents)! R$42,441.19! R$11,037.15! R$11,037.15! R$11,037.15! ! R$46,169.99! R$56,505.74! R$77,084.29! R$70,825.52! R$52,981.61! R$45,007.33! R$74,443.23! Barracão,dos,Mendes, ! Wage, ! NVA, Producer,level, , Table,66:,Income,Account,expressed,in,profit,or,loss,in,the,horticulture,value,chain, 10.15. Appendix,13:,Profit,or,Loss,in,Value,Chain,B, ! ,! ,! R$22,062.39! R$181,172.60! R$9,417.50! R$10,472.33! R$81,155.20! ! ,! R$1,305.30! R$1,717.95! R$892.65! ,! R$1,785.29! R$3,676.12! R$1,759.48! R$1,436.19! ,! ! Taxes, R$11,300.19! R$7,250.51! R$7,758.93! ! R$2,266.67! R$3,512.61! R$2,175.75! R$6,186.32! R$8,223.36! R$4,149.29! R$2,326.61! R$3,496.10! R$828.98! R$2,051.32! ! Interests,&, Maintenance,Cost, ,! ,! ,! R$12,720.00! R$13,276.80! ! R$2,400.00! ,! ,! ,! ,! ,! ,! ,! ,! ,! ! Rents, R$895,010.59, R$889,437.42, R$16,944.66, 2R$14,316.63, R$164,463.92, , R$697.98, R$591.92, R$19,144.09, 2R$33,340.24, 2R$70,807.24, 2R$17,447.17, R$57,711.19, 2R$1,690.63, 2R$6,831.77, R$27,384.57, , Profit,or,Loss, ! Opportunity, • Opportunity!getting!into!Government`s!projects!and!programs! • Opportunity!in!receiving!public!resources! • Better!orientation,!assistance!and!agricultural!extension!for!farmers! • Direct!commercialization!and!more!value!added!for!the!farmers! • Expand!direct!commercialization!through!governmental!programs! • Regional!development!–!could!expand!the!market!(COMPERJ!project)! • Enable!technological!advance!in!order!to!improve!food!quality!(cold!chain)!and! diversification!of!products!(mini!processing),!therefore!adding!value!for!farmers! • Provide!more!advertisement!on!agricultural!products! • Value!the!farmer’s!role!and!their!importance!on!the!society! • Create!an!environment!of!self!resilience!underneath!the!climate!vulnerability!and!further! consequences! • Public!services!improvement!such!as!education,!health,!security! • Provide!better!infrastructure!for!transportation!and!green!energy!supply, ! Strength,, • Better!set!of!organization!through!farmer’s!association!and!micro,watershed!committee! (COGEM)! • Exchange!of!knowledge!and!experience!between!farmers!within!the!associations! • Policies!and!programs!creation!after!the!Tragedy!of!2012,!brought!infrastructure! improvement!on!rural!area!and!sustainable!land!use!practices!(Micro!watershed!program!–! PPR)! • Short!production!cycles!and!immediate!income! • Strategic!localization!near!urban!center!! • Importance!on!local!vegetable’s!supply!market! • Government’s!programs!to!easy!the!access!to!the!markets!(however!needs!expansion)! , , , , , Table,67:,SWOT,Analysis,–,Nova,Friburgo,conventional,farmers, 10.16. Appendix,14:,SWOT,Analysis,Value,chain,B, ! Weakness, • Disagreement!within!farmers!association!and!conflicts!of!opinion! • Association’s!insufficient!legal!power!and!self!organization! • Insufficient!resources!driven!to!technical!assistance!and!extension!institutions! (EMATER),!which!sometimes!depend!on!municipal!capital!resources! • Harvest’s!losses!due!to!climate!and!inadequate!land!use! • Labor!scarcity! • Low!qualified!labor!and!low!community!education! • Infrastructure!necessity!for!roads!to!easy!the!supply!of!agricultural!products! • Low!technology!on!farming!! • Dependency!on!the!middleman,!responsible!for!crossing!the!agricultural!goods! • High!transportation!and!sales!costs! • Centralized!commercialization!problems!(among!low!hygiene,!prices!instability,!high! operational!costs,!low!food!quality,!lack!of!regulation!and!bad!infrastructure)! • Low!inspection!and!abusive!use!of!pesticides!! • Local!wholesale!market!does!not!explore!its!potential!of!use!and!farmers!prefer!not! to!sell!their!goods!there! • Difficulties!in!having!access!to!the!markets!and!commercialization!(mainly!direct! commercialization), Threats, • Climate!change!vulnerability!(heavy!rains!or!long!droughts),!tragedies! • Commitment!and!the!further!non!realization!of!policies!and!governance,!which! creates!public!frustration!and!distrust!! • High!fluctuation!on!market!prices!of!agricultural!products! • Difficulties!in!acquiring!rural!credits!and!finance,!due!to!high!bureaucracy!and! exigency!of!banks!and!government!funds!programs! • Lack!of!regulation!on!market!prices,!which!leads!to!high!instability! • Difficulties!in!setting!a!place!on!the!wholesale!farmer’s!market!(CEASA)! • Competition!with!other!Brazilian!states!large!producers! • Lack!of!planning!and!control!of!production,!generating!very!high!supply!and!low! prices,!increasing!food!wastage!! • Labor!loss!for!other!economical!activities!and!Family!Allowance!(“Bolsa!Família”)! • Regional!development!–!could!take!away!most!labor!force!(COMPERJ!project), ! DECLARATION+IN+LIEU+OF+OATH+ ! By! Juliana!Minetto!Gellert!Paris! ! This!is!to!confirm!my!Master’s!Thesis!was!independently!composed/authored!by!myself,!using! solely!the!referred!sources!and!support.! I!additionally!assert!that!this!Thesis!has!not!been!part!of!another!examination!process.! ! ! ! !!!!!!!!!!!!!!!!!!!!!!!12!September!2015,!Cologne! Place!and!Date!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Signature! ! ! ! 209! ! ! ! ! 210!
