Cacao for Peace (C4P)

The main goal of the USAID/ USDA project, Cacao for Peace (CfP), is “to strengthen Colombia’s key agricultural institutions in the public and private sector for cacao with cooperative research, technical assistance, and extension education. The CfP vision is to improve rural well-being through agricultural development that is inclusive and sustainable with positive impact on cacao farmers’ incomes, economic opportunities, stability and peace.” Under this directive, USDA commissioned this report to examine the cacao supply chain in detail in select regions of the country, discuss opportunities and strengths with producers and key stakeholders, and offer strategic approaches to position Colombia’s cacao sector in domestic and international markets with the end goal to realize the potential for cacao as an avenue for peace.

The Supply Chain

Supply chain

 

Why Cacao?

The Colombian cacao sector presents opportunities specifically in the context of post-conflict development. Recent efforts to promote the sector have focused on expanding cacao production and to a lesser degree post-harvest management, the establishment of producer organizations, and the exploration of niche markets. Despite these interventions, the sector still underperforms its potential. Rather than focus primarily on cacao production, we propose a strategy that clarifies roles and responsibilities in the sector to avoid inefficiencies and overlap and thereby enhance coordination and collaboration amongst national and regional actors, investments in strengthening producer organizations to become viable rural businesses, the provision of clear market signals and incentives for improved best management practices. After considering all of the stakeholder input and available data, we believe these interventions will improve the competitiveness and productivity of cacao production can help the cacao sector live up to its potential.

Conflict Zones vs Cacao plantations

Global Cacao Production

Colombia differs from larger exporting nations (Cote d’Ivoire, Ghana, Ecuador) in a number of ways. First, global multi-nationals play a more limited role, with two Colombian companies – Casa Luker and Nutresa – purchasing over 80% of Colombian cacao bean production. The smaller importance of international markets, extent of development and infrastructure in Colombia, and the presence of these two large buyers means the marketing structure within Colombia is different from that found in the major cacao exporting countries.

Global Cacao Production

Second, most traders in Colombia maintain at least informal relations with either one of the two large chocolate companies or with a small chocolate manufacturer. The majority of cacao produced in Colombia ends up going to one of these buyers. Significantly smaller volumes of cacao flow from the central traders to small chocolate manufactures, as well as to the international market. Third, producer prices in Colombia (prices paid at the Casa Luker and Nutresa buying centers) closely follow the ICCO world price and are well above prices paid to producers in the majority of cacao producing countries of the world. Finally, significant internal demand for cacao and chocolate products, such as drinking chocolate, exists in Colombia and constitutes an important market outlet for many cacao producers.

Reports

For the purposes of this study, a mixed methods approach was taken. It is focused on four research threads which examine (1) the physical cacao flows – from farm to processor to end user; (2) the prices received for cacao along the chain, including the costs related to procurement and processing; (3) the actors along the chain – including their roles, behaviors and recommendations for increasing efficiency in the Colombian cacao sector; and 4) the contextual issues and considerations that affect market outcomes in the Colombian cacao sector, including production and processing, and confectionery in general.

Document Link
An Analysis of the Supply Chain of Cacao in Colombia - Booklet English --
An Analysis of the Supply Chain of Cacao in Colombia - Full report English Spanish
Cacao in Ecuador - Trip Report English --

Presentations

Document Link
Asking Stakeholders How They Would Spend Aid Money: Facilitating a Gathering of the Value Chain in Colombia’s Project English --
Cacao for Peace: A Community Development Approach to Improve the Colombian Cacao Supply Chain  English --
Cacao para la Paz: Un Análisis de la Cadena Productiva de Cacao en Colombia -- Spanish
Analysis of the Colombian Cacao Supply Chain: An Applied Community Development Approach English --

Media

Document Link

CIAT joins forces with Cocoa for Peace

English Spanish

Putting together the puzzle of cocoa in Colombia

English Spanish

Cacao for Peace: Examining the Cacao Supply Chain as a Pathway for Peace in Colombia

English --
What role can cacao for peace play in Colombia? English Spanish

El embajador de EE. UU. le apuesta al cacao en el posconflicto

-- Spanish

Cacao for Peace Initiative

English --
Tamara Benjamin Tamara Benjamin tamara17@purdue.edu
Michael D. Wilcox, Jr Michael D. Wilcox, Jr wilcox16@purdue.edu
Gary Burniske  Gary Burniske grburniske@purdue.edu
Colleen Kelly Colleen Kelly colleenkelly@purdue.edu

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