Guatemala: Access to credit for small farmers
Published on 11 January 2012

The World Food Programme (WFP) and the Rural Development Bank (BANRURAL) launched a joint credit strategy that will allow small farmers to market their maize and beans.


Through this effort, 65 smallholder low-income farmers' organizations participating in the Purchase for Progress (P4P) Initiative in Guatemala will have sufficient capital to aggregate production for sale to WFP or other buyers. Through the associative marketing of maize and beans from the members, the organizations will be able to improve their negotiating positions and reduce speculation from informal intermediaries.

 "One of the strengths of working with BANRURAL is that the requests for marketing credit can be made in any of its offices located nationwide," said Roberto Bran, marketing consultant for WFP. He added that credit is available only for organizations from the P4P project." In the future we expect to have credit available for inputs and agricultural insurance."

In the last quarter of 2011, a total of 46 organizations have been trained including 141 farmers (83 men and 58 women) in the eastern, southern and northern regions of Guatemala.


 WFP and BANRURAL organized a series of workshops for producers to inform them about this strategy and its advantages, including third-party payments.


"During the training workshops we learned that the application process for marketing credit is simple and easy, and it will be beneficial for us," said Riquelme Sagastume member of Atescatel Integral Cooperative RL, participant in the workshop that took place in Jutiapa, Guatemala.

WFP Offices
About the author

Elizabeth Sagastume

Public Information Officer

Elizabeth Sagastume worked as a Public Information Officer for the WFP Office in Guatemala.