ALLIANCES

What is an ECONOMIC DEVELOPMENT PRODUCTIVE AND SOCIAL ALLIANCE?

An economic development productive and social alliance is a SOCIOECONOMIC DEVELOPMENT MODEL that partners small, medium and large producers with experienced businessmen, in order to undertake a productive, profitable, sustainable livelihood project. This model uses the comparative and competitive advantages of each of the partners in the ALLIANCE.

The model has enabled:

• Integrating the peasant economy into agro-industrial chains.
• Creating sources of legal jobs for farmers and their families.
• Substituting and preventing planting of illicit crops.
• Protecting small producers form losing the plots due to the violence generated by unlawful groups.
• Consolidating effective control of the territory and creating development poles by incorporating important regions to the national production.

Given their private and business nature, the Alliances are managed as a sole productive unit, with homogenous investment and social plans, work standards and assurance and control processes. This will guarantee excellent technological levels, quality of the resulting products and their commercialization at competitive market levels.

Similarly, the social component of the model meets specific goals as to betterment in the wellbeing and quality of life of the farmers, their families and the community. This in turn, becomes greater opportunities for development of the communities in the areas of influence of such Alliances.

FINANCING: A DECISIVE INSTRUMENT

INCENTIVE TO RURAL CAPITALIZATION, ICR

The ICR is a contribution in cash granted by the Colombian government through FINAGRO bank, to producers in the agricultural sector that are developing new crop projects, to assist in modernizing their activity and improving their productivity, competitiveness and sustainability.

THE "FONDO AGROPECUARIO DE GARANTÍAS"

The purpose of Fondo Agropecuario de Garantías, FAG, is to endorse the credits rediscounted before FINAGRO, when credit users do not have guarantees or these are insufficient or inadequate.

RURAL DEVELOPMENT WITH EQUITY, DRE

The DRE is a special credit line recently created with the purpose of strengthening competitiveness of agricultural exploits and protecting national production from exposures to external distortions. The hindrance of this credit line is that resources run out quickly, and the short-term of the agro-industrial projects - 5 years - that do not allow for a true reconversion of the sector.

HIGHLIGHTS OF OUR ALLIANCES