COCOA NEWSLETTER
JULY 2018
CONTENT 3
Introduction
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Cooperative Development Program Strengthens Ties Between Cocoa Cooperatives and Organic Buyers
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Fortaleza del Valle Adds Value to Fairtrade Cocoa
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Advocating for the Wellbeing of Children in the Dominican Republic
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CAC PANGOA: A Fairtrade Success Story
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Fairtrade Cocoa Infographic
COCOA NEWSLETTER Edition 1, year 2018
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INTRODUCTION
ocoa production in Latin America and the Caribbean is internationally recognized, as a region that predominantly supplies high quality, fine cocoa with excellent aroma. For this reason, price differentials often surpass the market price for cocoa, benefiting farming families throughout the continent. However, small-scale cocoa organizations still face many challenges, resulting in unexpected financial shortcomings for producers. Some of these challenges include: high costs of production, low productivity, poor infrastructure, the effects of climate change, pests, disease, and in some regions, the presence of heavy metals in the soil.
Together, member organizations from the Cocoa Network, alongside CLAC’s team, continue to seek out and develop proposals in response to identified challenges, through representation and advocacy work, and by defending the interests of smallholder farmers. In addition, they are working to open markets, strengthen and develop skills, exchange experiences and information, develop risk response strategies, implement projects and build alliances with other actors in and out of the Fairtrade system. We invite readers to enjoy this newsletter in which we focus on demonstrating some examples of the impact Fairtrade, along with the work of CLAC, has had on cocoa producers in the region.
As a response to these collective challenges, the Cocoa Network was formed in 2014; it is made up of 74 Fairtrade cocoa organizations, members of the Latin American and Caribbean Network of Fair Trade Small Producers and Workers (CLAC). The network is a consultation and coordination body that consists of cocoa organizations from eight countries in the region, whose main objective is to advocate for greater benefits for Fairtrade cocoa producers, their families and communities.
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COOPERATIVE DEVELOPMENT PROGRAM STRENGTHENS TIES BETWEEN COCOA COOPERATIVES AND ORGANIC BUYERS By Julia Baumgartner Cooperative Development Program Consultant, Equal Exchange
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n an effort to exchange with the cooperatives that form part of its value chain, in deeper and more innovative ways, business cooperative Equal Exchange (United States) started the Cooperative Development Program (CDP) in 2010. This program, financed by USAID, included six Fairtrade organizations in Ecuador, Peru and the Dominican Republic, including associations and cooperatives that bring together small-scale organic cocoa producers. Among these leading Fairtrade cocoa organizations are: cooperatives ACOPAGRO, Oro Verde and Norandino in Peru, associations Fortaleza del Valle and UOPROCAE in Ecuador and CONACADO in the Dominican Republic. Overall, the project sought to address three common obstacles that were identified at these organizations, including low productivity, quality limitations due to the lack of common language and the necessary tools to process and analyze cocoa, and finally, insufficient capital or income generation. For this reason, the integral project was formed on the basis of three main axes: productivity, quality and capitalization.
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PRODUCTIVITY Through the CDP Program, teams from several cooperatives tested and validated “technical packages” on organic farming practices in cocoa, with the aim of increasing productivity per plot. A key aspect in the success of this program is strengthening the technical assistance programs offered by the cooperatives themselves, not necessarily by the project. In this sense, the cooperatives designed a methodology for selecting elite plants, supporting their efforts to identify and cultivate local cocoa varieties that are not only more productive and resilient to disease, but also taste good. As a result, productivity has increased an average of 106%, thanks to demonstration plots and the replication of these models.
QUALITY When the project started, there was no common language between producers and buyers, regarding the taste of the product. Using the system developed for the specialty coffee industry, project partners and participants set out to create a sensory analysis card for cocoa, along with a toolkit for its application. This work began with the installation of seven small “Flavor Labs,” so that cocoa cooperatives could evaluate their samples in the same way that buyers do, by tasting cocoa liquor. The project also helped train lab technicians and establish a tasters panel. Overall, the laboratories have allowed the cooperatives to learn more about their product, providing them with a facility to process, taste and market quality cocoa for their clients.
As a result, the cooperatives have managed to produce and market specialty cocoa, attracting new clients and generating over $2.3 million (USD) in cocoa quality awards.
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CAPITALIZATION Agricultural cooperatives assist their partners by purchasing and selling their crops, adding value to processing, implementing social programs, lending money (credits) and providing technical assistance. In order to provide these types of services, cooperatives need access to large amounts of capital and are often times dependent on loans and cooperative projects to survive. It is also very difficult to generate sufficient income through membership fees. For the past seven years, the CDP project has supported participating cooperatives to create social capital and savings programs, while at the same time, strengthening organizational capacity. Through the capitalization programs, the cooperatives have managed to generate an income, allowing them to grow and reduce their dependence on high interest loans. The total social capital and savings generated in 2017, between five cooperatives, sums a total of $4.8 million (USD).
For more information, including the resources and materials developed throughout the project, visit: http://equalexchange. coop/usaid-cooperative-development-program.
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FORTALEZA DEL VALLE ADDS VALUE TO FAIRTRADE COCOA T
he CorporaciĂłn Fortaleza del Valle is a second level corporation that groups together five grassroots organizations in the coastal province of ManabĂ, Ecuador. The organization was founded in 2006 and is currently made up of 961 small and medium-sized cocoa producers. According to its mission, Fortaleza del Valle works to promote opportunities for economic and social development, improving the quality of life of its members and their families. From the beginning, the organization was certified organic, guaranteeing Renato Herrera environmentally that its products are chemical free, and therefore, friendly. At the same time, they were also Ecuador Fairtrade certified, with the aim of earning a fair price for their cocoa and promoting sustainable development for small-scale producers.
FAIRTRADE PREMIUM USE Fairtrade has always been an important part of Fortaleza del Valle, generating additional income for farming families through cocoa sales and Fairtrade Premium investments. With the Premium, the organization has managed to provide new services to its members and implement a variety of projects and programs.
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Currently, they are developing a project to convert raw materials (raw cocoa) into finished products, such as chocolate bars. Funded by international credits, external support and Fairtrade sales, the project began in 2015 with the aim of adding value to the organization’s cocoa, improving prices for producers and generating new job opportunities. Since then, Fortaleza del Valle has managed to build a chocolate processing plant and purchase the necessary equipment for its operations, successfully producing finished chocolate bars. This year, they are planning to invest in additional assets for the plant, such as a press to extract cocoa butter. As a part of the project plan, the organization also carried out trainings and workshops in chocolate tasting for young people, specifically for members’ children, so that they too form part of the organization’s activities. In addition, they trained an on-site technician in chocolate production to help manage the plant. Finally, in conjunction with the training, Fortaleza del Valle is advertising their chocolate, through marketing and publicity, to be able to sell it in national and international markets. This processing plant not only benefits cocoa producers, but also their family members, who actively participate in the project. In the end, this project provides an added value to Fortaleza del Valle’s cocoa, helping farming families increase their income and improve their overall quality of life.
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ADVOCATING FOR THE WELLBEING OF CHILDREN IN THE DOMINICAN REPUBLIC
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he Latin American and Caribbean Network of Fair Trade Small Producers and Workers (CLAC) is governed by the Fairtrade principles, promoting socially responsible and inclusive agricultural production, respecting the rights of adults and children alike. For this reason, CLAC focuses on areas of work that support and strengthen its member organizations, such as raising awareness about the hazards of child labor. The International Labor Organization (ILO) defines child labor as the participation of children or adolescents (under the age of 18) in areas of work or jobs that deprive them of their childhood, potential and dignity; jobs which are dangerous and detrimental to their physical and psychological development, and interfere with their education.
Child labor is a violation of safety, a right all children possess. Therefore, CLAC is committed to promoting the wellbeing of children and adolescents, as well as safeguarding them from any form of harm. This commitment is essential to CLAC’s work, forming part of its organizational framework and operations. One example of the work carried out in this area is a project led by CONACADO, a Fairtrade cocoa organization in the Dominican Republic. Fairtrade International funded the project, and CLAC supported in its implementation. Overall, the project focused on children’s wellbeing, specifically of those close the cooperative, and was implemented between 2015 and 2017 in the communities of Sabana del Rey and Las Canas.
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Not only did this project raise awareness about the protection and wellbeing of children, providing tools and response mechanisms to staff and members of CONACADO, but it also gave children, adolescents and young adults the opportunity to reflect on highrisk situations that are most likely to affect them. In addition, it allowed them to propose solutions and prevention processes alongside adults from the community. And finally, the project helped implement a monitoring system in order to identify and respond to child labor, or other vulnerable situations. One of the principle outcomes of this participatory approach was community involvement. For example, special signs were placed around the community indicating areas that could be considered high-risk to children (for example, bridges in poor conditions) as well as signs prohibiting the sale of alcohol to minors. They also placed speed bumps in high traffic areas, to avoid accidents. The community followed up on these actions and made a long-term commitment to children’s wellbeing, by creating communitybased child protection committees. These committees work with state and local authorities to monitor and respond to potentially vulnerable situations.
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CONACADO technical staff managing the project share: “We know that, in our country, small-scale cocoa producers manage with the help of their families, meaning that all members of the family are involved in work-related activities. Thanks to the pilot project, we have implemented a protection policy, which defines responsibilities, prevention measures and other activities that we carry out as an organization, to continue advocating for the wellbeing of children and adolescents.� Currently, CONACADO is implementing a new project, in partnership with Save The Children and funding from the European Commission. With this project, the organization will continue to advocate for children in other communities in the Dominican Republic.
CAC PANGOA: A FAIRTRADE SUCCESS STORY T
he Cooperativa Agraria Cafetalera Pangoa Ltda. (CAC PANGOA) is located in the district of Pangoa, in the province of Satipo, Peru. The organization was founded on October 2, 1977 by 50 small-scale coffee farmers, with the aim of improving their prices. Since then, CAC PANGOA has been working as a cooperative, in solidarity, to face the collective needs of its members and the community. Currently, it is made up of 680 members. Although the organization began with coffee, today, they produce high quality fine cocoa - certified Fairtrade organic - and recognized at national and international levels. They produce a native variety from the region, which is known for its intense chocolate flavor; the cocoa is creamy with fruity acidity, notes of apricot, apple and herbal touches. Overall, CAC PANGOA has developed a production system that demands high quality standards, carefully carrying out each process, from seed selection to the final product. In 2017, this quality control system allowed them to win several awards, including the silver medal at the London Academy of Chocolate, together with Obolo Chocolate, in the Bean to Bar category (less than 80% cocoa).
FAIRTRADE PREMIUM USE With funds from the Fairtrade Premium, the cooperative has carried out a number of projects, contributing to the integral development of the community. For example, they have invested in a special fund for young members, and members’ children, to help finance higher education. It is a revolving credit, with can be repaid for up to 10 years. Currently, 27 young adults are studying at university level and receive support from this fund. In the long-term, this investment promotes higher education and academic development among producers and their families. CAC PANGOA has also invested in the health and wellbeing of its members. First, they created a preventative health fund, which can be used to cover the costs of medical care for themselves or their families. In addition, the organization installed new appliances and equipment in producers’ homes, in order to promote sanitary, healthy living conditions. For example, they installed washrooms, toilets and kitchen stoves, improving the day-to-day living conditions of organization members. To aid in production processes, the cooperative installed canopies for fermenting and drying cocoa beans, in addition to investing in transportation, in order to transport cocoa from the field to processing areas. Members of CAC PANGOA have also implemented agroforestry on their farms (reforestation), helping reduce the degeneration of local forests. These types of investments, in post-harvest infrastructure and sustainability, allow producers to work more effectively, while improving cocoa quality and conserving the environment.
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“We are thankful for Fairtrade because it benefits us [as farmers], improving our farms and providing a more dignified life for rural families in Peru.” Raúl Alanya, CAC PANGOA