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MARKET-DRIVEN AND DIGITALLY SUPPORTED

SOLUTIONS FOR PRODUCERS, EXPORTERS AND


BUYERS TO BOOST SUSTAINABLE LANDSCAPE
MANAGEMENT AND LIVING INCOMES IN THE
COLOMBIAN ORINOQUIA AND AMAZON
MARKET-DRIVEN AND DIGITALLY SUPPORTED
SOLUTIONS FOR PRODUCERS, EXPORTERS AND
BUYERS TO BOOST SUSTAINABLE LANDSCAPE
MANAGEMENT AND LIVING INCOMES IN THE
COLOMBIAN ORINOQUIA AND AMAZON
The department of Caquetá is part of the Amazon river basin, a strategic
ecosystem for the region and for the world in general. Historically the depart-
ment of Caquetá has been the most affected by deforestation in Colombia due
to moving agricultural frontier and the presence of illicit crops. The region is
of crucial importance in the current peace process, but suffers from the pres-
ence of illegal armed groups and the lack of state control. Main crops are coffee,
cocoa, extensive livestock production and rubber.
The department of Meta is at the heart of the agricultural frontier, located in the
Orinoquia river basin and bordering the Amazon. Meta is a key area for Colom-
bia’s palm oil production and an expansion area for crops like coffee and cocoa
(Piedemonte). Parts of Meta are now opened up for agriculture as a result of the
peace process, however landscape management is at an infant stage.
Smallholders make up over 80% of the producer population and are limited in
their competitiveness due to the lack of access to technical assistance, training
and finance. As a result, incomes are low and farmers have a reduced capacity to
invest in climate smart agriculture. Deforestation is a common phenomena
as farmers tend to expand areas to compensate for their suboptimal
productivity and profitability.
To develop more sustainable landscape approaches in Caquetá
and Meta, it is necessary to propose intervention strategies
that allow the conversion of existing production systems,
so that families in the area have earnings closer
to the regional living income benchmark. Solu-
tions developed between market players and
producers are key to build the conditions for
healthy agricultural value chains. Fair access to
data through digital applications enables better
decision making by the value chain stakeholders.
Bogotá

Meta

Caquetá

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This proposal focuses on:

Farmer support programme: Design, implementation and conversion to climate smart and
deforestation-free agri-production systems accompanied by digital support tools for technical
assistance, training/education and finance, focused on increasing productivity to reach a target
of gaining 20% more of profit margin.

Commercial support: Strengthen associative marketing models that allow, through econ-
omies of scale, to make the commercialization of existing main crops viable. This strategy is
accompanied by committing important companies that stock up on local products (Nespresso
in the case of coffee, Nestle for milk, Colcocoa and Ferrero Germany for cocoa and Henkel for
palm oil).

Landscape approach support: Introduce sustainable landscape models that enable farmers
to receive direct environmental services like:
• Microclimatic regulation
• Improvement of benefit Insects and Fungi
• Pest and disease management
• Recycling nutrients planting trees
• Legumins fixing nitrogen to the soil (saving costs on chemical fertilizers)

COFFEE CONTEXT

Coffee production in Caquetá mainly comes


from these municipalities: Florencia, El
Doncello, El Paujil, La Montañita, Puerto Rico
and San Vicente del Caguán. There are approx-
imately 1.800 coffee producers that repre-
sents around 66.000 hectares, of which 2.800
hectares are planted with coffee. In the rest
of the area, the vast majority are in degraded
pastures and minimal areas of forest relics.
Yields are around 65 arrobas of c.p.s / ha, very
low compared to the national average that is 110
arrobas of c.p.s / ha. An important part of this
coffee is bought by Nespresso within a program
that bets on the revitalization of depressed
regions around the world (reviving origins).
With the support of Nespresso technicians
we can provide technical assistance to coffee
farmers using the TASK standard (VSS) devel-
oped by Nespresso and also using digital solu-
tions developed by Solidaridad to collect data
and provide better decision making towards the
performance and compliance of TASK standard.

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MILK CONTEXT

In 2017, deforestation concentrated in two municipalities: have the opportunity to cooperate and bring market driven
Vicente del Caguán and Cartagena del Chairá (49.223 ha). solutions to reduce deforestation.
The main reason is clearing the land for pastures for exten-
sive livestock production. In Caqueta 14.251 livestock farms Nestlé´s intervention and work with dairy farmers has no
are identified, of which it is estimated that 43% of the prop- integrated digital infrastructure that allows proper deci-
erties belong to smallholder farmers who have less than 50 sion making and more efficient technical assistance service
hectares and 26% belong to medium farmers (51 to 100 (technicians keep records on paper). There is a need for a
hectares). 1,6 million liters of milk per day are produced digital system to process and analyze data collected from
in Caquetá, the average yield is 2,2 lts/cow/day (national farm level.
average is 4,8, still very low). That very low yield is due to At the moment in Colombia there is no Sustainable Live-
the lack of knowledge and technical assistance for a more stock Framework that enables milk buyers like Nestlé and
professional farming. end-consumers to recognize the sustainability perfor-
Nestlé de Colombia S.A. buys milk with cold chain to 1.600 mance of dairy farmers; but currently the Colombian
farmers that represents 12% of the total volume of milk Roundtable for Sustainable Livestock (public-private initi-
production of Caquetá. Nestlé Colombia process and ative) with their working groups is developing that frame-
commercialize well known and positionated brands in the work with landscape approach: Principles, Criteria and
colombian food market, such as: Klim, Milo, La Lechera, Indicators for Sustainable Livestock Landscapes in
Nesquik and Crema de Leche Nestlé. Currently is the only Colombia; Solidaridad and Alexander Von Humboldt Insti-
market and formal player operating in the region that can tute leads this work.

COCOA CONTEXT

In 2017, Colombia had 175,000 hectares producing 60,535 The cocoa production chain in Caquetá is compound of
tons of cacao beans. The country doubled production three basic equelons: growers (agricultural activities),
between 2000-2015. Cacao is considered as one of the cocoa processing and commercialization. As part of the
most promising crops for former conflict zones, as a good first one, about 1.200 growers (and families) work on
alternative to illicit crop production, due to its suitability for small farms based on agroforestry systems. Most of these
tropical soils and climate conditions. This crop currently farmers belong to a local producer association and in a
represents 0.6% of national GDP and with potential to second level, to the ACAMAFRUT association, which repre-
increase the area by over 4 times, offers significant poten- sents them at the Cocoa Chain´s Regional Committee.
tial for economic growth.
Cocoa processing activities are implemented by some local
There is no consensus on the official cocoa production data entrepreneurs, although with serious organizational and
from Caquetá. Fedecacao estimated the total planted area planning difficulties. The commercialization of most of the
in at least 1,350 hectares in 2017. On the other hand, the cocoa is carried out as ordinary product and the multiple
Caquetá´s Secretary of Agriculture considered this area possibilities of differentiation existing in the region are not
reached 4,300 hectares. According to Fedecacao, the total taken advantage of. Therefore Nacional de Chocolates
production associated was about 106 Ton (1.139 Ton based (Nutresa Holding) and Casa Luker are the main buyers of
on data from Secretary of Agriculture). the cocoa production from Caquetá.
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On the other hand, Colcocoa is a Colombian company such as: environmental and socio-economic benefits,
specialized in the export of high quality cocoa beans (selling quality, productivity and happiness.
to Ferrero in Germany). This works with and for cocoa
growers in more than 10 departments in Colombia. Its Colcocoa´s intervention and work with cocoa farmers
objective is to obtain quality cocoa, focused in prosperity could improve integrating digital infrastructure that allows
and sustainability, involving more than 4000 growers, their proper decision making and more efficient technical assis-
families and their communities through a development tance service. There is a need for a digital system to process
program called “Echar Pa´lante”. This model is based on and analyze data collected from farm level.
impact with measurable results that seek to achieve aspects

PALM OIL CONTEXT

Colombia is the fourth producer of palm oil in the world, ha) of the land planted with oil palm between 2001 and
with a contribution of 2% of the worldwide production 2005 occurred at the expense of gallery or riparian forest,
and 1,7% of total palm oil traded globally, and the first in wetlands, foothills, or natural savannas, while the other 75%
America. Currently, palm oil is produced in 21 departments were mainly transitional crops and pastures.
of Colombia, including 152 municipalities.
The project will engage 250 oil palm producers within
In 2018, total production in Meta reached 413.300 tonnes the sustainable palm oil value chain located in the eastern
of crude palm oil produced on 141.068 hectares. The region region in Colombia. Most of the municipalities are on the list
represented 32% of national production, generating more of post-conflict areas and are also distinguished for having
than 44.085 direct and indirect jobs. high value conversation areas around the plantations. It will
support 10 out of 23 palm oil mills which are manufacturing
The expansion of oil palm plantations has been a major companies dedicated to the extraction of crude palm oil,
driver of biodiversity loss in this tropical area. The National olein, stearin, RBD, fatty acid and palm kernel oil production.
Ministry of Environment indicates that in this Orinoquia
region (eastern Colombia), approximately 25% (3.626

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ACTIVITIES AND
IMPLEMENTATION
STRATEGY
Prior to project implementation: jointly built baseline, target and interventions

The main activity to develop at this stage corresponds to Realization of a workshop for socialization and validation
the articulation and alignment of institutions, communities with beneficiary communities. With this dialogue, adjust-
and initiatives that are present in the region. Meetings are ments are made and the interest of the communities to
held with key people of potential allied companies: Nestlé, participate in the project is confirmed. Empowerment of
Nespresso, community leaders. This dialogue is an input to the participants is also generated, a key element to achieve
build a tighter proposal, specify better the expected results the proposed results and goals.
and articulate actions.

PROJECT IMPLEMENTATION

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Farmer support programme: Design, implementation and conversion
to climate smart and deforestation-free agri-production systems
accompanied by digital support tools for technical assistance, training/
education and finance, focused on increasing productivity to reach a
target of gaining 20% more of profit margin.
We propose to design and implement climate smart agri- Digital tools developed by Solidaridad allow to support
cultural production systems adjusted to the agroecological better the implementation of these models, with tailor-
context of the area where the negative impacts on natural made solutions understanding the profile of the target
ecosystems are minimized, carbon footprint is reduced and group of farmers and technicians, overcoming the obsta-
the use of ecosystem services is optimized. cles in infrastructure and geographically dispersed loca-
tion of the producers. Even farmers and technicians will be
trained in the use and functionalities of the tools.

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Farming Solution App: This mobile application allows the farmer to undertake a self-eval-
uation according the “standard” that the buyer or market player demand for each product
(coffee, dairy, cacao, palm oil). It provides the producer an easy and friendly way to under-
stand performance analysis, a work plan for improvement, access to customized support
and training material, notifications on news of any kind of information (prices, weather,
meetings, training trips, others). It can work offline if its already downloaded and the farmer
is registered.
Extension Solution App: This mobile application is intertwined with the Farming Solu-
tion App allowing the technician from the buyer company to verify the compliance of the
“standard” during the field visits (also works offline). The Extension Solution increases the
efficiency of the provided technical assistance and generates important cost-savings (no
more paper records). It increases the veracity of the information at farm-level for more
confident decision making and generates a track record of the performance of producers at
individual and aggregated level.

Agrolearning https://agrolearning.com/ an educational digital platform developed by


Solidaridad to provide tailor made technical assistance to farmers and technicians. Also,
develop additional technological tools for specific community needs.

Apply the methodology of rural promoters developed by Solidaridad to have more impact
on the processes of technological adoption. Rural promoters are producers or members
of the producer’s family, who live on farms and get their livelihoods from crops or live-
stock production. An indispensable condition for being a Rural Promoter is being willing to
be trained; to implement improvement actions in their farms, share their knowledge with
the families that live in the surroundings and adopt the use of digital tools for continuous
improvement.

We as project executors also use digital tool for farm visits to identify successes, mistakes
and results.
Living income will be measured at the beginning and end of the project, using digital surveys
as well.

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Commercial support: Strengthen associative marketing models that
allow, through economies of scale, to make the commercialization of
existing main crops viable. This strategy is accompanied by committing
important companies that stock up on local products (Nespresso in
the case of coffee, Nestle for milk, Colcocoa and Ferrero Germany for
cocoa and Henkel for palm oil).
In the region there are some organizations that sell prod- want to strengthen long-term business relationships with
ucts, unfortunately their organizational structure is not customers that add value and bring support to producers
strong. Bearing in mind that the vast majority of producers of agricultural products.
are from the peasant economy, it is essential to promote
and strengthen associativity. We propose to strengthen In the case of coffee we propose a partnership with
these associations through training in: business models, Nespresso to trade a differentiated coffee. Nespresso is
value proposition designs, social enterprises and manage- working in Caquetá, to strengthen the commercialization of
ment of producers associations. On the other hand we coffee produced in its different places. They trade a special

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line for a product with particular characteristics. The plan palm oil have made commitments to only buy sustainable
is built on Nespresso’s long-term commitment to Colom- palm oil by 2020. This limiting market conditions can be
bian coffee and its effort to improve production in regions overcome when accelerating the adoption of sustainable
affected by the conflict, as well as the revitalization of the practices through a coordinated effort between the buyers,
coffee industry in these areas where production was lost. mills and producers.
The plan gives continuity to “Aurora de la Paz”, a coffee that
has its origin in the Caquetá region launched at the begin- For the palm oil supply chain, the multinational Henkel is
ning of the 2017 as a symbol of the opportunity that peace a strategic partner who has financed the development of
represents for coffee farmers. Farming Solution in Colombia to be disseminated among all
the producing areas in the country. Fedepalma/Cenipalma
In the case of milk, we propose a partnership with NESTLE has also shown interest in formally integrate Farming Solu-
to recognize the milk produced under climate smart prac- tion App in their National Sustainability Strategy as well as in
tices and landscape approach (including deforestation developing Extension Solution.
free) to introduce it in the colombian food market with a
differentiated category. In this sense, the project aims to support the continuous
improvement process of 10 mills and their supply base to be
As part of the cocoa chain, we propose a partnership with included into the sustainable market: Guaicaramo, Extrac-
Colcocoa, focused on a strategy based on sustainable cocoa tora Sur del Casanare, Entrepalmas, Hacienda La Cabaña,
to trade a differentiated product. Oleaginosas San Marcos, Alianza del Humea, Agropecuaria
Santamaría, Manuelita Aceites y Energía, Altamira.
Market access for oil palm producers is under threat as the
main buyers on the national and international markets for

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Landscape approach support: introduce sustainable landscape
models that enable farmers to receive direct environmental services.

Promoting the imple- Microclimatic regulation


mentation of the Improvement of benefit Insects and Fungi
following services:
Pest and disease integrated management

Recycling nutrients planting trees (or using biomass in the


palm oil case)

Legumins fixing nitrogen to the soil (saving costs on chem-


ical fertilizers)

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The challenge in creating sustainable agroecosystems (public and/or private) that offer payments to those who
(coffee, dairy, cocoa and palm oil) is one of achieving natural can demonstrate that conserve forests and introduce envi-
ecosystem-like characteristics while maintaining a harvest ronmental services within their farms and fill up the require-
output. Working towards the landscape approach, the ments of the programme (size, land title, incomes, etc).
manager of any particular agroecosystem strives as much as
possible to use the ecosystem concept in his or her design Carbon footprint measurement (using Cool Farm Tool): The
and management. Energy flow can be designed to depend Cool Farm Tool is a farm-level greenhouse gas calculator for
less on nonrenewable sources, and a better balance achieved estimating net GHG emissions from agriculture. This calcu-
between the energy used to maintain the internal processes lator takes the estimates of technical potential to the farm
of the system and that which is available for export as harvest- and uncovers what is practical and pragmatic from a farmer
able goods. The farmer can strive to develop and maintain and field perspective. The Cool Farm Tool sits between calcu-
nutrient cycles that are as “closed” as possible, to lower lators using simple emission factor approaches (IPCC Tier 1)
nutrient losses from the system, and to search for sustainable and those Process Based Models which require a greater level
ways to return exported nutrients to the farm. of engagement on the part of the use and training to inter-
pret (IPCC Tier 3). The CFT was developed by Sustainable
Our intervention can also involve and engage producers Food Lab.
and associations of producers to participate in programmes

EXPECTED RESULTS

Outcomes Outputs KPIs

The coffee/dairy/cacao • Farmers are trained in good agricul- • Number of farmers trained in good
sectors become more tural practices. agricultural practices.
competitive in Caquetá • Farmers exchange lessons learned. • Number of farmers implementing
• Farmers are trained in the use of better agricultural practices.
The Colombian palm oil Farming Solution and Agrolearning. • Number of farmers using Farming
sector in Meta becomes • Technicians are trained in the use Solution
more competitive resulting of Extension Solution and Agrole- • Number of technicians using Exten-
in an increase of yields. arning. sion Solution.
• % increase in yields for each
product or crop.

Development of an inno- • Web and mobile technology • Number of farmers directly bene-
vative technical assistance platforms for training, M&E and fiting from this programme.
programme reaching small technical assistance developed
and medium size coffee/milk/ by Solidaridad and rolled out in
cacao/palm oil farmers. Colombia.

Reduction of external inputs • Farmers trained in cost/benefit • Number of farmers implementing


(pesticides, fertilizers, fuels, relation of environmental services environmental services practices.
others, etc). practices. • % of reduction of external inputs.

GHG emissions reduced • Carbon footprint calculation per • Number of hectares deforested
or deforestation rate farmer. (forest cover change analysis).
decreased • System to monitor forests • Number of farmers trained in
bimonthly by satellite images inter- Climate Smart Agriculture.
pretations focused on Caqueta
region.
• Farmers are trained in Climate
Smart Agriculture.

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TENTATIVE TIMEFRAME

ACTIVITY Q1 Q2 Q3 Q4
1. Farmer support programme
Development of Farming/Extension Solution X X
Continuous development and implementation of training through Agrolearning modules X X X
2. Commercial support
Development of business case for CSA and link to businesses X
Implementation of B2B activities for CSA (Participation in trade fairs, sector events, visits
X X X
to industry players, buyer visits to implementation areas, meetings with investors)
Development of communication materials targeting market players
 X X
3. Landscape approach support
Develop work plan and working methodology for selected pilot areas X
Landscape is tested in pilot areas X X X
Evaluation and monitoring of deliverables
 X
Carbon footprint measurement (use of Cool Farm Tool) X X
Administrative activities
Kick-off meeting, deliverables, planning, logistics, project activities coordination. X
Follow-up meetings X X X X
Impact measurement and closure evaluation X

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