Guajilote Cooperativo Forestal

"Guajilote Cooperativo Forestal, Honduras"

Guajilote Cooperativo Forestal was a cooperative with operations outside of Chaparral, a small village located in La Muralla National Park in Olancho province, Honduras. This cooperative was founded in 1991 as a component of a USAID (United States Agency for International Development) project, which attempted to develop La Muralla National Park as an administrative and socioeconomic model expected to be transferred to other Honduras' national parks.

"The Guajilote Cooperativo Forestal was given the right to exploit naturally fallen mahogany trees in La Muralla buffer zone." Until that moment, it was the only business venture in Honduras with that special right.

In 1998, Guajilote started facing important issues and concerns that could affect its future growth and survival. Until that moment, Guajilote biggest concern was deforestation through fires, illegal logging, and slash and burn agriculture.

Lack of transportation was another major concern for Guajilote Cooperativo Forestal. The cooperative capital was not enough to buy trucks to secure the mahogany transportation. Their only distributor was taking advantage of that and was not paying enough for the wood. To conclude Guajilote was surrounded by potential restrictions by CITIES and COHDEFOR. In addition, the fires, illegal deforestation, and illegal migration to the forest were decreasing the mahogany population.

Impression of Guajilote as a business venture

Guajilote as a business venture lacks of possibilities to expand operations if they do not solve their major problems. The cooperative only product (wood) is very limited; even though all sources are limited, Guajilote sources are almost scarce. In addition, the members lacks of education and administration, market and business experience, which worsen the cooperative situation and future growth. To make thing worst for Guajilote Cooperativo Forestal its administrator have no supervision and the members do no take participation in that process, meaning that the administrator and his nephew could be benefiting themselves form the cooperative profits, limiting the cooperative to grow financially.

The cooperative growth is tied to too many regulations and laws due to the possibility that the Mahogany tree could become an endangered specie. Each year CITIES and COHDEFOR are more concerned with the mahogany tree population and creates more regulations.

The Guajilote administration does not follow regular accounting and market procedures', limiting a real picture of what is happening with the company's book (profits).

SWOT Analysis of Guajilote

Helpful Harmful

Inside Strengths

a. The group set up hand sawmills near the fallen trees.

b. The members are developing a knowledge of the market and business practices.

c. The use of the river or stream to facilitate transportation out of the forest. Weaknesses

a. More funding is required for continuing and/or expanding operations.

b. The growth of the company is limited by the amount of mahogany fallen per year.

c. The product (trees) is hard to find and to process.

d. The cooperative lacks of adequate transportation.

e. The transportation is limited by obstacles (inaccessible roads).

f. Administrator does not divide the profits evenly.

Outside Opportunities

a. The cooperative is contributing to Honduras' economic growth and children education.

b. The establishments of relationship with distributors such as Juan Sauzo.

c. Establish direct relationship with local furniture makers.

d. Establish business outside Honduras using the export business. Threats

a. Negative impact to the environment due to a possible deforestation.

b. Pressure and restrictions from the government, COHDEFOR, and CITES.

c. Decline in numbers of trees due to agricultural fires and natural causes.

d. Treacherous terrain, hard to reach areas, and weather.

e.