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Quesinor
Quesinor was established to resolve issues of low productivity and low income of a group of 350 small milk producers in the north of Ecuador. It is the result of 10 years of bilateral cooperation and efforts to improve the quantity and quality of production and to diversify products. It started as a group of 13 local associations that individually commercialized their cheese on local markets. The union of producers decided to create a commercial branch to reach bigger and more quality-oriented markets, such as supermarkets.
Quesinor is an association of small-scale rural milk producers.
Credits: IFAD/A.Manikowska, 2007 |
Bad management and unscrupulous leaders, unwise investments and unfavourable press reports of the quality of Quesinor's products brought the business to a halt. Today the dairy production plant is no longer in use because it became unsustainable after the union purchased technology that its members did not know how to use and did not need. Member associations now lack trust in the union, and a competing brand has filled the gap in the market over the last few months.
Despite these setbacks, Quesinor has had an important impact in organizing producers and instilling an associative culture. It has allowed for the readjustment and increase of milk prices on the local market and it has helped producers improve the quality and quantity of production.
Through a process of identifying its weaknesses and strengths, Quesinor is currently revisiting its business plan and elaborating a strategy to overcome the crisis.
Lessons learned
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Markets and marketing opportunities It is always necessary to develop a strategic business plan before embarking a business endeavour, and to have a follow-up plan for implementing business objectives. The key to success is diversifying products, clients and marketing channels. Organization and leadership The team of experts that supports a grass-roots business must come from a range of sectors such as processing, finance and marketing. All of the organization's leaders must be sensitized and trained in all areas of business management to avoid misunderstandings and potential conflict. The business idea must emerge from the group of producers, who are the future managers. There must be a balance between the number of producers and those who do not produce. Communication and a trustful business relationship with producers is crucial. Constant market monitoring is necessary to reinforce and improve the product's competitiveness. Technology and innovation Business management - Associations and their members must be engaged and must be able to express opinions and doubts about what external partners tell them.
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Source: IFAD
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