Achiote Success Story
(Link to Achiote Production Project Description)
ACHIOTE PAINTS THE YUNGAS RED
Go to Exporting Achiote Success Story
In the Heart of the Yungas, the Achiote Plant is an Ecologically-safe Alternative to Synthetically-produced Red Dye
The first product in Bolivia to earn organic certification from Bio Latina, achiote provides an ecologically-safe alternative to synthetically-produced dye. Red bixin, extracted from the seed of the achiote plant, is used as a natural colorant in food, cosmetics, pharmaceuticals, and textiles. Growers in the Yungas sell the seed to niche markets in Europe, Argentina and Peru, where demand for the product exceeds supply!
The bixa orellana plant (a.k.a. achiote or annatto), is the major cash crop of Villa Exaltación, a small community in the Caranavi province. Fifty-four families have joined forces to form the Integral Association of Ecological Producers of Achiote (AIPEAVE). In two growing seasons (May-June and September-October), they produce between 125 and 195 tons of achiote seed.
Recognizing the potential of increased market share and earnings, the families of AIPEAVE requested assistance from Bolivia’s Vice Ministry of Alternative Development (VDA). As a result, AIPEAVE became the recipient of a grant from the Yungas Community Alternative Development Fund (YCADF) that paid for materials, equipment and training to improve the achiote production and post-harvest processes.
ACDI/VOCA aided dramatically in the proper implementation of the grant, especially by hosting technical assistant volunteer Nicholas Shirra to provide invaluable advice about production, post-harvest processing, and marketing for the members of AIPEAVE. Under the YCADF, each family was assisted in the construction of a drying patio and storage facility. Grant monies also paid for the purchase of five winnowing machines and five threshing machines. These ten manually-operated machines, which are shared and transferred between the all member families, replace the time consuming and arduous process of extracting the seed by hand.
As part of its marketing strategy, AIPEAVE participates in the Yungas alternative development exhibits at fairs and events aimed at giving growers an opportunity to introduce their product and make contacts with potential buyers.
To identify new international markets for their achiote seed, AIPEAVE President Rofelio Quispe travelled with ACDI/VOCA staff members as part of a delegation sent by the YCADF to the BIOFACH (Development of Organic Markets) conference in Nuremberg, Germany in February of 2004. Assisted especially by volunteer marketing consultant Nicholas Shirra, Quispe learned about global resources, organic production methods, the logistics of international shipments, and how to determine costs and prices. With experience from this event, Quispe and other representatives of Yungas agriculturally productive activities travelled to the BIOFACH trade show in Rio de Janeiro, Brazil, in September of the same year. There, Quispe met with international buyers, established profitable relationships for his organization, and further helped to assure the sustainability of Villa Exaltación’s achiote enterprise. Bringing local leaders like Quispe to international fairs develops strong local leadership, stimulates private initiative, and supports communities of growers in making the transition to a global marketplace.
Quispe continues to work with his fellow achiote growers of Villa Exaltación to increase production and sales. They anticipate higher sales of the red bixin from their achiote seed to an increased number of Latin American and European buyers in the near future. ACDI/VOCA is proud to share the success of the fifty-four families of AIPEAVE who are increasing their incomes and impacting the economic stability in the heart of the Yungas.
EXPORTING ACHIOTE
Yungas Achiote Growers Achieve International Quality Standards and Successfully Export to Buyers in Germany
The process of identifying international markets for organic achiote (annatto) involves more than simply contacting prospective buyers. The product must first meet international standards. Producers must work cooperatively with export promoters who assist in marketing their product. Producers must comply with all export regulations. Producers must be able to fill orders. And the product must reach its final destination in the specified time period.
Participation in the February 2004 BIOFACH (Organic Market Development Conference) Fair in Nuremberg, Germany proved successful for Yungas achiote growers. Immediate interest was shown by German and Japanese buyers. ACDI/VOCA assisted Yungas growers in conducting product-related laboratory tests required by international companies. Product samples from the achiote cooperative AIPEAVE were submitted for analysis. A client in Hamburg approved the achiote product samples and requested a container.
After analyzing achiote samples, Japanese companies also provided feedback, allowing producers to make necessary modifications in order for their product to comply with new Japanese import standards. Further ACDI/VOCA volunteer technical assistance will be provided, in coordination with the Center for Promotion of Sustainable Technology, to provide the necessary compliance training.
Towards the aim of developing AIPEAVE’s export readiness, as well as consolidating export markets for Yungas achiote producers, ACDI/VOCA coordinated activities with the Bolivian Promotion Center (CEPROBOL), Bolivian Chamber of Exporters (CAMEX), and the USAID-funded FAO C-23 project. Agreements were signed with CAMEX and CEPROBOL-JETRO (JETRO’s Andean Foodstuffs Program). CAMEX is providing technical assistance and training to achiote, honey and banana producers from the Yungas on five export operations. Through the agreement signed with CEPROBOL and JETRO, organic achiote is now promoted in Japan. The product will participate in the Andean Foodstuffs Program, as well as the Andean Foodstuffs Fair in Tokyo during January 2005.
This first container of Yungas achiote was shipped in to Germany in September 2004. To assure successful shipping, AIPEAVE received technical assistance from CAMEX in the preparation of the product for export. After a careful selection process, 10 metric tons (MT) of achiote were packed in special bags, and shipped by truck to Arica, Chile. Once documentation at the port was finalized, the container was shipped onward to Hamburg, Germany and arrived approximately two weeks later.
International pricing for achiote exported to Germany proved significantly greater than current Bolivian national market prices. This is good news for AIPEAVE, which received a request from the German buyer for more shipments.
