Environmentally Sustainable Cacao Production for small-scale Indigenous Peoples and Afro-descendant Farmers in Honduras

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1 Public Disclosure Authorized Environmentally Sustainable Cacao Production for small-scale Indigenous Peoples and Afro-descendant Farmers in LATIN AMERICA AND CARIBBEAN Agriculture Global Practice Recipient Executed Activities Technical Assistance Loan FY 2012 Seq No: 4 ARCHIVED on 03-Dec-2015 ISR21385 Implementing Agencies: Public Disclosure Authorized Key Dates Key Project Dates Bank Approval Date:10-Jan-2012 Original Closing Date:14-May-2016 Project Development Objectives Effectiveness Date:19-Sep-2012 Revised Closing Date:14-May-2016 Public Disclosure Authorized Project Development Objective (from Project Appraisal Document) Contribute to the increase in productivity to at least 6 quintals per hectare of small-scale cacao producers by lowering production costs through environmentally- sensitive production systems, such as agroforestry and build strategic partnerships to improve commercialization. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Public Disclosure Authorized Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions The implementing agency ACICAFOC and the AGROCACAO team successfully achieved the development objective. All farmers are producing friendly and sustainable agroforestry systems. The productivity was improved from 4.5 quintals per HA to 6 quintals per HA and in some cases it was registered even 10 quintals per HA. The Project installed two chocolate factories which are managed by women. AGROCACAO has been a very successful project. It exceeded the expected results. It implemented 40 sub-projects with an average participation of 2/22/2016 Page 1 of 6

2 25 small farmers in each project. Some Projects gather more beneficiaries. As a result the total number of farmers benefited are 1181, instead of 1000, which it was initially estimated. The average size of the farms is about 1.5 to 2 Ha. As a result, AGROCACAO promoted and fostered organic and environmentally friendly practices in about 1700 HA exceeding the estimated target of 1000HA. One of the main objectives of the Project was to build the capacity of smallholders all over the chain value starting from preparing the soil, planting, harvesting, post harvesting and trading. Therefore, in order to improve the post harvesting capacity of smallholders that lead to a considerable reduction on thier costs - due to previous poor harvesting collections 9 collection centers have been built. Build the capacity of smallfarmers in organic agrofrestry based on cacao has been one of the most important taks opf AGROCACAO. has several endemic and native varieties of cacao "foratero" which are considered "aromatic and gourmet" cacao in the international markets. To profit of the production of and commercailization of such precious vairoeties AGROACAO promoted the organic production in order to provide smallholders with a produce capable to enter into a selective niche. Farmers were trained in production of organic compost in their farms using reosurces available in their plots with the purpose of creating technological packages at low cost and accesible to smallholders budgets. To facilitate this important aspect of the chain value AGROCACAO contributed to the establishment of one organic fertilizer plant. Wide spectrum of ethnic groups have benefitted from the Project; among those afro-descendants, indigenous groups, and mestizo peasants. The Project promoted the participation of women. It established two chocolate factories both manage by women, on by mestizo women while the other one by graifunas (afro descendants). The execution area of AGROCACAO is the home of the poorer rural groups of where opportunities are rare and difficult to find.in order to facilitate access to funds and training AGROCACAO supported the legal establishment of 10 community-based organizations who lacked the resources to obtain legal documentation. Indigenous Pech were among the benefitted. This group counts for one of the poorest indigenous groups in. Open oportunities for women, both genders and for the youth has been great achievement. The yout organized a radial program to build up awareness of the need to protect the environment and to promote organic and friendly practices. As part of the capacity built in the entire chain value the project established strategic alliances with international buyers such as chocolates Halva. 2/22/2016 Page 2 of 6

3 Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall Low -- Low Results Project Development Objective Indicators PHINDPDOTBL Farms using agroforestry systems (SAF) (Number, Custom) Value Comments The average size of the farms runs from 1.5 to 2 HA. It is important to note that not only the expected result / indicator was exceed but the number of HA benefitted from the Project were about /22/2016 Page 3 of 6

4 PHINDPDOTBL Farms piloting certification services (Number, Custom) Value Comments There were no certified farms when AGROCACO started to be implemented. Environmentally friendly and organic production was not wide spread. The Project piloted to certified three groups of beneficiaries - that is to say - three of the 40 sub projects implemented. In average each of the sub projects gathered 25 farmers, meaning that at least 75 farmers have benefitted of having officially extended certification to produce organic cacao. Nonetheless, the organic and friendly practices were adopted by all 40 subprojects and by all 1181 farmers. Due to the limited resources the Project had budgetary limitations to extend certification of organic production to all cooperatives and farmers despite the fact the good practices of smart agriculture were implemented. PHINDPDOTBL Farms producing up to 6 quintals per HA (Number, Custom) Value Comments Genetic material, using native cocoa trees accompanied by good and smart agriculture to produce agro forestry based in cacao contributed to increase the productivity rapidly., obviously has the ideal climatic conditions and the variety of native cocoa trees to enter into the selective market of aromatic and organic cacao which has less volatile prices in the international market vis a vis the cocoa produced using conventional forms of production and using other genetic material. Technological packages using raw materials available in the area contributed to reduce costs, increase productivity and access to a captive and selective market that leads to increase farmers' incomes. Overall Comments More than 80% of the farms exceeded the target of producing up to 6 quintals per HA. The average production is 8 quintals per HA and in some cases it reached 10 quintals per HA. Genetic material using native cocoa trees accompanied by good and smart agriculture produce agro forestry based in organic cacao contributed to increase productivity. The production of organic cacao helped to enter into a more selective and less volatile market. Technological packages using raw materials available in the area contributed to reduce costs, increase productivity and access to a selective market. The combination of these factors led to increase farmer's incomes Intermediate Results Indicators 2/22/2016 Page 4 of 6

5 PHINDIRITBL Increased number of farmers to better use AFS (Number, Custom) Value Overall Comments Build the capacity of small farmers to produce sustainable Agro Forestry Systems (AFS), smart agriculture capable to adapt to climate change requires of a cultural change in the form of production. This change is only feasible to produce if constant and consistent technical assistance, supervision and companionship is provided showing them with tangible results that smart agriculture is feasible and that good practices lead to adaptation to climate change and this to increase in productivity and income. This is the only form to increase the number of farmers willing to change bad for good practices and to engage in smart agriculture. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P TF Effective USD % Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P TF Effective 30-Apr May Sep May May-2016 Cumulative Disbursements 2/22/2016 Page 5 of 6

6 Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/22/2016 Page 6 of 6