active in marketing, particularly in the early 1990s, but of late many have been in decline.<sup>42</sup> Results of the CRMG survey indicate that only 22% of the producers were members of producer organizations.

In 1990, about 20 producer associations were registered as exporters and up until 1996 they accounted for about 20% of Dominican Republic’s coffee exports. Between 1993 and 1999, these organizations experienced a decline in export share from 9.4% to 2.2% of coffee exports. Problems associated with the recent sharp international price decline have caused many of these associations to become heavily indebted. Of the associations that exported in the early to mid 1990s, fewer than half have exported regularly in recent years.<sup>43</sup> For example, Café La Joya, which was the leader in quality coffee exports, has lately had trouble finding financing for its coffee.

# _INDUBAN (Industrias Banilejas C. Por A.)_

The internal coffee market is controlled by INDUBAN, who functions as a local buyer, exporter, and roaster of coffee. INDUBAN controls about 95% of the domestic market and about 20-30% of exports. Recently, in May 2003, INDUBAN has not been exporting coffee due to narrow profit margins; especially compared to domestic markets. INDUBAN purchases most of its coffee at regional buying centers and either roasts it and sells it into the internal market or sells green coffee for export. Historically, INDUBAN paid producers the international market price minus a predetermined marketing margin. This price was communicated on a regular basis to INDUBAN’s local buyers. Recently, however, due to low international prices, the company lists a price that remains constant for many months, and instructs its buyers and managers to use this price as a base for a standard “good quality” price. In practice, the buyers often pay prices below this listed price. INDUBAN’s management indicates that at least 25% of its purchases are below the standard “good quality” price.

# _Major Producer Associations and Cooperatives_

Coffee producer associations are generally small with limited functions and services. There are, however, some important coffee producer associations.

FEDECARES is made up of ten nuclei (associations) which aggregate smaller associations throughout the Southwest. FEDECARES encompasses 6,000 farmers on 15,625 hectares who produce on average between 80,000-85,000 qq annually (for an average of 2.6 ha/producer and average yield of 250kg/ha). FEDECARES has been participating with CODOCAFE in a major coffee rehabilitation project following damage from Hurricane Georges. This program also replaces trees affected by disease and age, and has benefited 2,472 families and 772 hectares.<sup>44</sup> FEDECARES provides some production credit to its members. The typical term involves a twoyear repayment schedule. ICP is working with FEDECARES on its coffee project.

Union de Asociaciones de Caficultores del Norte, Inc (UNACAFEN) is a non-profit apex farmers association established in 1991 that works to aggregate associations and producers organizations throughout the central and northern mountains. This cooperative provides commercialization and

> 42 The proliferation of producer associations can be attributed to SEA’s long-standing efforts to organize small coffee producers.  These efforts help explain the lack of clearly defined functions for these groups. 43 SOFRECO (2002, p.31).

> 44 “Caficultores del Sur ven la luz al final del túnel”, _Listin Diario,_ November, 29, 2001.

> 44“La caficultura espera la mano del Gobierno”, _Listin Diario_ , October 18, 2001.

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