This project which is targeted squarely at small producers seeks to improve the effectiveness of the entire potato sector in Peru. The institutional resources earmarked for this project should stimulate technological, institutional and commercial innovation. It is hoped that this work will lead not only to an appreciation in the value of the humble potato but also to its wider distribution and use.

Boosting income through better quality, improved coordination of the potato sector and innovation
The potato originated in the Andes. In Peru alone, 3,000 native species have been recorded, most of them cultivated by small farmers in mountain regions. Their distribution and processing, though, is concentrated in the hands of medium-sized and large companies. The rare innovations that are made are confined exclusively to the processing industry. It is therefore hardly surprising that the branch of production concerned primarily with selling the raw material is not very competitive.

Higher income through better market access
Promoting the market launch of new products by highlighting the unique features of native potatoes (culinary quality, natural product, different shapes and colours) can help increase the income margin of the various stakeholders in the production chain. The International Potato Centre (CIP) coordinates these activities and participants include two Peruvian government ministries, research and development facilities, as well as producer, trading and processing associations.

The range of new products includes selected and washed potatoes as well as processed products using native species (coloured crisps, coloured mashed potato, and freeze-dried soups). In 2005, and in response to the achievements of the project to date, the Peruvian Government declared 30 May "National Potato Day", a move which would be later emulated by the UN when it designated 2008 the “International Year of the Potato”.

 Coordination among the stakeholders – a crucial success factor
The success of a project of this kind depends on the coordination of everyone involved. The quality criteria and punctuality required by a market economy play an important role and can only be guaranteed if a project is coordinated. With support from the project, the production-chain participants set up public-private partnerships, which should ensure the coordination of joint projects in the future.

Concrete results
Participating regions have seen a sharp rise in their average annual income generated from the sale of potatoes (from USD 721 to USD 2,058). Furthermore, there are signs that the quality of their products has also improved.

Commercial innovations
These refer primarily to finished goods that give small producers better and wider access to fast-moving markets with higher value-added. As a result of the project, the following products have already been launched on the market:

• “Mi Papa, Seleccionada & Clasificada” (wholesale);
• “Tunta” (Chuño blanco);
• pre-packed potatoes (local market and export);
• “Puré Andino” (export);
• “T’ikapapa” (supermarkets);
• “Jalca Chips” (export).

Institutional innovations
These include new rules on cooperation between players in the potato sector and public stakeholders. Special agencies have been set up (e.g. CAPAC Peru and Alianza Institucional de la Tunta). New standards have also been established, such as the designation of a National Potato Day, quality norms for Tunta (dried potato), and a universal commercial code for potato wholesalers. At the same time, efforts are also under way to ensure that potatoes and the need for sustainable sectoral development are firmly placed on the agenda of both policymakers and the potato sector in Peru.

Technological innovations
These include technological changes to improve the effectiveness and quality of the production and manufacturing processes, which will bring them into line with the standards required by the market. Some of the positive outcomes in this area include:

• trials on the drafting of quality standards for the “Mi Papa” brand;
• tests on potatoes that suffer from delayed sprout development;
• as well as the wider introduction of strategies on integrated crop management;
• storage techniques and seed production technology.

The project in brief

Contact
SDC, Latin America Division

Centro Internacional de la Papa
cip-incopa@cgiar.org