Establishment of a Sweet Potato export chain Note: This project has been cancelled, because the project partners have not been able to keep the business going.In spite of its very long history of growing sweet potato, Peru exports virtually none of it. Sweet potato growing in Peru is generally practiced on small plots of land by farmers who produce for the local market. They lack the scale of operations, the know-how and the means to access the international market, which is rapidly expanding mainly due to strongly increasing demand in Europe. Solfruit International B.V. from the Netherlands and Southern Cross SA from Peru, now propose an ambitious plan to establish the commercial scale production of sweet potato for export, of which a part under own administration and a part cultivated by small farmers under their supervision, in the region of Piura. Two high-yielding, early maturing sweet potato varieties, that are much in demand in Europe, will be introduced. Two crops of sweet potato per year will be alternated with a crop of melon or watermelon. A packing plant will be established to wash, sort, pack and store the product before shipping. The project will create direct employment for more than 200 persons and indirect employment to some 125 workers at outgrowers fields. The complete cultivation operations will be GlobalGAP certified, and the packing plant will be HACCP certified.Partners will set up a joint venture company.Corporate Social Responsibility (CSR)CSR will be embedded in the project through HACCP and GlobalGAP certification. The joint venture will also implement the BSCI Code of Conduct, already abided by the Applicant. Key elements of the BSCI Code are: freedom of association and the right of collective bargaining, no discrimination, no child labour, legal minimum wages, maximum working hours compliant with national laws, no forced labour nor disciplinary measures, a safe and healthy workplace, respect for the environment, a social accountability and anti-bribery and anti-corruption policy.Impact•	Employment and working conditionsThe project will create 219 direct jobs (139 at the cultivation fields and 80 at the packing plant, including administration), and this will grow to 400 (275:125) in two years.The wages paid will be at least 10% above the legal minimum wage. Its full-time staff will enjoy complete social benefits which include health insurance, pension fund contribution, unemployment benefits, a 13th and a 14th months of salary paid in July and December and a 15th month salary deposited in a special saving account. The workforce that will be hired according to the Agrarian Labour Regime, will have health insurance and pension payments. These include the packing plant workers, field workers, tractor drivers, field storekeeper and field guards. They will be hired on a contract-day basis as is common practice in Peru, although their employment will be close to full-time due to the year-round production.•	Innovation/Transfer of knowledgeCommercial scale sweet potato growing is new to Peru and so is processing and packing of sweet potato for export. The Peruvian people and farmers have cultivated local varieties of sweet potato on small plots on the river banks for centuries, but have no knowledge or experience on how to cultivate on a large scale, with drip irrigation, for export. Partners will introduce new knowledge regarding the cultivation of the two new varieties, with a strong focus on homogeneous produce as required by international markets.•	Chain effectsViviate is a small community with around 4,000 inhabitants. Many farmers within the Viviate community received their land through the agrarian reform performed by President Velasco in the seventies. Due to a bad experience with cotton four years ago, most farmers decided not to take any risk anymore. Therefore, at present most of the land in the community is not being cultivated. In order to receive an income, the people of Viviate work in the coast villages in the fishing sector or work at places three hours away by bus.The project will include 25 outgrowers who will be allocated land to produce sweet potato in rotation with melon and watermelons. The outgrowers will be supported by the company with technical assistance and the required inputs like seeds and fertilizers. The revenues generated by selling the products, after deduction of the production costs, will create extra income for the contract farmers. The income to outgrowers is forecasted at PEN 11,000 per year. Although this is only indicative, it is clear that the return to labour is potentially excellent for Peruvian smallholders. At 275 work days per year, each outgrower provides work for 5 persons.•	EnvironmentThe cultivation area will be established in Piura, a dry area in the north of Peru. The farm will be set up at 2 km distance from the river, which carries water suitable for agricultural production. The partners will construct a canal to bring the water to the farm and a water permit from the Water Users Organisation will be required.To handle the different plagues and rots that can cause damage to the crops, only GlobalGAP approved fungicides and pesticides will be used. Furthermore, the agriculture engineers will take outmost care to use these products as conservative as possible.The project partners will use chlorine for washing the sweet potato in the packing plant. It is used in such small quantities that it is not harmful for the environment. This water will be used to irrigate the gardens on the plant premises.Furthermore, as required by law an environmental impact assessment will be performed. Altogether the impact on the environment will be neutral.•	Position of womenFemale workers will represent 45% of the workers in the field, and 65% in the plant. In the farm women will be involved in the activities that need precision and careful handling, such as taking cutlings and the maintenance of the plants which has to be performed continuously during the 90 days crop cycle. Likewise, the turning of the (water)melons will be done by the female workers. In the plant, the sorting, selection and packaging is executed by female workers. Also, in the administrative area female employees will be engaged, particularly in the positions of Finance & Accounting Manager, Plant Manager, different Assistants, Quality Control Officer, Packing Supervisors, Bookkeeper, Internal Control, Cashier and Secretaries. To establish a production and processing chain for sweet potatoes and rotation crops (melons, water melons) for export, based on production at own land and with outgrowers.