Detail

Colombian Specialty Cocoa (Cacao+Sostenible)

The project adopted new sustainable business models for the supply of Colombian specialty cocoa to the Swiss market. In particular, the project promoted transparent long-term business linkages and helped farmers to improve farm profitability and quality.

What the project was about

In 2016, the Government of Colombia signed the Peace Agreement with the FARC rebel group and cocoa became a key factor as part of the post-conflict framework, as it is considered an ally in the substitution of illicit crops. However, most projects in the cocoa sector lacked market orientation and the support of small cocoa producers achieved limited results in terms of sustainability and scale.

This project helped leverage private sector investments to generate innovations and develop new processes, products, and technologies. The goal was to improve the living income of cocoa farmers and their families and to achieve a transparent, traceable, and climate-friendly cocoa supply chain.

Location
Colombia
Duration
2020-2022
Number of beneficiaries
2’524 smallholder farmers and their families
Implemented by
Swisscontact
Project partners
Colcocoa, Pakka
Budget
Total: CHF 1.48 million, SECO’s contribution: CHF 920’000

What was done

Cacao+Sostenible consolidated and leveraged viable and innovative business models that provide exportable supply according to the requirements of the sustainable Swiss chocolate industry within a framework of better conditions for small producers and their families. This was done by:

  • Directly linking small and environmentally responsible producers in Colombia to sustainable buyers in Switzerland through certification schemes and traceability platforms.
  • Offering efficient and cost-effective services to small producers related to management, technical assistance and capacity building in climate-smart agriculture and eco-intensification.
  • Promoting access to inclusive financial products and solutions appropriate to the characteristics and requirements of small cocoa producers.
  • Creating a robust knowledge management system for sustainable cocoa.

What the project achieved

The project improved the living conditions of 2’524 small producers and their families, promoted climate-smart agriculture and on-farm biodiversity (459 farmers applying climate-smart agricultural practices) and prevented deforestation and promoted reforestation. Project partner Colcocoa integrated 250 farms into its company sustainability program with Echar Pa’lante certification. Project partner Pakka optimised cocoa harvesting and quality control processes with two producer organisations and facilitated the organic certification of 131 producers in the Huila and Tolima regions.

In doing so, the project supported 1’578 smallholders in complying with the requirements of the Swiss cocoa market and increased by 1’407 kg the sales of cocoa produced according to Voluntary Sustainability Standards.

The mentality of farmers has changed about the use of chemicals in agriculture which are harmful to health. We have changed our way of living and the example we set for our children.

Marcela Ortiz-Navez, farmer in Algeciras, Huila, 36 years

What didn’t work or had unintended consequences

Due to the restrictions posed by the Covid-19-pandemic and the public unrest in Colombia, workshops and trainings have been conducted virtually and more digital tools were developed. At the commercial level, the restrictions have led to shortages in the supply and transportation of cocoa, which meant that new capacities had to be built up within the producer organisations. Rising input prices have increased production costs and atypical rainfall due to the La Niña weather phenomenon has decreased productivity. This has led to a shift in thinking towards more diversified production in agroforestry models, a reduction in chemical inputs and a rising interest in organic agriculture and the production of local organic inputs.

The goal of this project was to improve living income of cocoa farmers and their families and to achieve a transparent, traceable, and climate-friendly cocoa supply chain.

Small producers received services related to management, technical assistance and capacity building in climate-smart agriculture and eco-intensification.

Thanks to the project, 459 farmers started applying climate-smart agricultural practices.

Project partner Colcocoa integrated 250 farms in its company sustainability program with Echar Pa’lante certification. Project partner Pakka facilitated the organic certification of 131 producers.

In total, the project supported 1’578 smallholders in complying with requirements of the sustainable Swiss chocolate industry.

Interview with Silvan Ziegler from Swisscontact

Silvan Ziegler (Deputy Country Director, Colombia), in what ways were the project's approaches new and innovative?

While cocoa is considered an important peace crop in Colombia and is widely promoted as a coca crop substitution, most interventions in the sector lack a proper market orientation. Moreover, quality and sustainable production are poorly rewarded. This project helped leverage innovations and technologies from the private sector and at the same time create long-term business linkages. This was done by providing knowledge, experience, and cross-learning among the partners, aligning efforts towards the same end, and having at its centre the consumers’ preferences and the quality of life of the producer families.

What has Swisscontact learned through the project?

Among the main lessons learned, we highlight the integration of digital communication and new technologies into processes and the need to bridge the technological gap with rural communities in Colombia. This was critical within the context of restricted movement due to the Covid-19 pandemic and political unrest. All consortium partners could further mitigate such challenges by transferring technical and management skills to local partners. Having an empowered technical team in the communities and within the producers’ organisations has facilitated their ownership and economic empowerment and has resulted in great relief for the continuity of the project.

What do you recommend to other stakeholders implementing similar projects?

Encouraging producers and producer organisations to carry out their own technical growth processes based on the project’s activities has been a winning strategy that has been valued by them. It was perceived that, in this way, the appropriation of the contents, tools and resources provided were better understood and owned by the participants, reducing practices such as selling and exchanging the services, which we have seen in other projects. We also learned that the youth can be an important factor in bringing new technologies and innovations to the producers and helping to bridge the generational gap.

What are the next steps?

While our private sector partners will continue to source cocoa from the intervention areas and support the producers’ organisation, Swisscontact is seeking solutions that go beyond individual supply chains of certified and verified production. As a next step, we will scale up the ongoing efforts and develop two pilots for sustainable sourcing landscapes where all local stakeholders in the areas are involved. Together, we will address sustainability challenges such as deforestation, biodiversity loss and rural development on a regional level. The adoption of income diversification measures on and off farms, and the increased involvement in decision making inside the landscapes will increase the income of producer households and their resilience to climate change and market shocks.

How is it ensured that the project has not only short-term, but long-term effects?

Both Pakka and Colcocoa are committed to expanding their investments in improvements linked to the protection, restoration and rehabilitation of forests and ecosystems. They have long-term investment plans and keep sourcing sustainable cocoa from Colombia. Both have established sustainable partnerships, involving producers, traders, processors, and retailers. Pakka co-founded Equiori, the first certified organic chocolate producer in Colombia, which has grown 100 % in the last year. Colcocoa establishes direct long-term relations with producers through its voluntary standard program “Echar Pa'lante”, verified by CERES International.

Project description on Swisscontact's website


Organisations involved