Climate Smart Cacao Value Chain in the Orinoquía Region—Increasing Cacao Knowledge 

who:

World Bank Group, Solidaridad and ProFound

what:

Market Analysis

When:

2023

Where:

Orinaquía Region, Colombia

PROJECT DESCRIPTION:

The Orinoquía region, located in western Colombia and bordering Venezuela, is known for its vast fertile lands. It has diverse ecosystems and species, with a rich biodiversity that is still not fully explored; 35% of the region’s species are unique. Its wetlands make up 34% of Colombia’s total, showing its significant water resources. 

However, this biodiverse region faces social and economic challenges: violence, rebellions, illegal crops, poor communication, and inadequate services. Many farmers here grow illegal crops due to pressure or lack of alternatives. What solutions could be offered? 

In this context, cacao emerged as a potential solution: it is easy to grow, requires low maintenance, and adapts quickly. It also offers good pay. But are these claims true? The World Bank Group aimed to uncover facts that could develop the cacao sector in the Orinoquía region. 

The goal was to increase exports of commercial and organic products with a positive or neutral environmental impact. 

achieved goals

Results

After reviewing more than 70 publications and publicly available sources, conducting 11 semi-structured interviews, engaging with key actors in the climate finance sector, and having informal conversations with cocoa traders, processors, and chocolate manufacturers, as well as conducting 404 surveys with regionally representative producers, and holding 7 focus group sessions the team collected over 200 soil samples and 194 cocoa samples. From this comprehensive approach, the team arrived at the following conclusions:

million hectares are available for cacao cultivation

Although Orinoquía spans over 25 million hectares, many areas are restricted for cocoa cultivation due to legal exclusions, lack of infrastructure access, sparse populations, and difficult physical conditions. 

of the cacao market is specialty cacao

This segment includes the niche of fine-flavor cocoa, which represents a smaller portion of the market. The designation of “fine-flavor cocoa” is granted by the ICCO upon request from the countries and is not based solely on technical criteria.

countries worldwide

Offer fine-flavor cocoa

achieved goals

The team also answered the following questions:

Where does cocoa grow?

Cocoa cultivation is concentrated in various watersheds like the Ariari River in Meta, the Cusiana River in Casanare, and the Arauca River in Arauca, along with other important areas near the eastern mountain range foothills. These soils have transitional parent material and adequate fertility. 

Can Cocoa Grow Anywhere?

Cocoa is delicate and needs shade, humidity, and warmth due to its Amazonian origins. It requires agroforestry systems for optimal seed production and cannot thrive in heavily degraded areas. 

Is Cocoa Feasiable for Agroforestry Systems?

Restoring degraded areas with cocoa is only feasible in agroforestry systems with additional layers like banana, avocado, and timber trees. 

Does Cocoa Have Significant Potential to Adapt to Climate Change?

Yes, and also of  becoming a highly carbon-negative crop if: 

  •  It’s grown in well-developed agroforestry systems with three or more layers. 
  • It preserves natural forests by offering an alternative income. 
  • Fertilization avoids mineral-based inputs. 
  • Production focuses on areas with good transportation infrastructure, avoiding air transport. 

 To distinguish Orinoquía cocoa from other origins, sustainability efforts may include certification, but a more comprehensive strategy with additional differentiation elements is necessary

achieved goals

Additionally, the team developed recommendations to improve sector profitability: 

 

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  • Strengthen producer organizations. 
  • Improve financial literacy among producers. 
  • Rehabilitate degraded lands. 
  • Adopt cultural techniques and crop management practices to mitigate climate change impacts.
  • Address generational gaps in agriculture. 
  • Provide financial, administrative, and technical education to promote farming as a business. 
  • Promote gender equality and inclusion. 
  • Develop infrastructure to connect with broader markets. 
  • Establish a National Cacao Council to balance national and international markets.
  • Formulate regional strategic plans for public-private partnership initiatives. 
  • Enhance infrastructure development using mechanisms like the Tax for Works.
  • Establish cocoa processing centers and cocoa-bean purchasing schemes. 
  • Specialize in post-harvest practices, developing aroma profiles and differentiation strategies. 
  • Ensure adherence to quality standards and production processes. 
  • Maintain consistent bean quality. 
  • Provide specialized training in fermentation techniques and grain processing to producer organizations. 
  • Implement a comprehensive quality assurance system integrating traceability, sustainability, and food safety. 

 

  • Design a regional transportation infrastructure plan financed through national budgets, oil royalties, Tax for Works, public-private partnerships, or concession schemes. 
  • Expand and improve access to electricity in the region

This study provides the tools needed to promote cacao policy based on evidence rather than myths or popular beliefs.

Miguel camacho

Project Lead, ProFound