Pay your cacao farmer well!

Cocoa beans from a Theobroma cacao tree

Cocoa beans from a Theobroma cacao tree

There is a troublesome trend in the farm world; small farmers are throwing in the towel and big farms are getting bigger.  Naturally, these massive operations have effects on the environment, food costs, human health, communities, and more.

This year we had an experience that made this trend personal.  To be honest, we’ve had an awful harvest when we didn’t expect it.   As a medium scale operation, the income that our harvests bring can be a critical element to our financial sustainability.    We want to do things right, and that costs money.

Last November when our “winter” harvest usually comes in we had a series of weather phenomenons that threw a big fat wrench into our cacao efforts.  Climate change for us, has felt very real this year.  In fact we estimate a 70% decrease in production when compared to last year.  Thankfully we have good clients and we’re diversified; for example we’ve been able to sell lumber and services to make up the difference, but what about the small farmer?  How does one who already lives marginally cope with these situations?  Does he/she give up to go work for the industrial farms?

Most Cocoa farmers, the majority of whom live in West Africa, live in poverty.  In Guatemala, where most of the cocoa is grown by cooperatives, the socio-economic situation is not bad, but its still marginal.

IMG_5149

For the poor farmer that eeks out an existence and is burdened with the risks of climate change and commodity prices, something has to change.  And part of that is to address the value chain and to recognize that we can pay our farmers a little bit more given all of the warmth and goodness that chocolate brings us.

Recently Izabal Agro-Forest conducted a market study for cocoa and found that a substantial increase in the commodity price for cocoa who would have almost no price effect on the consumer, which is crazy!  What the message here?: Let us pay our farmers more:

Andrew Miller (of IAF & Big Leaf) comments:

“Higher cocoa prices need not result in proportionally higher chocolate prices as cocoa represents just 5% of the retail price (see table below). Even if this percentage were to double to 10% in 2020, as projected by Euromonitor, chocolate prices could remain roughly flat.”

Screen Shot 2016-01-10 at 11.24.37 PM

Small to medium sized chocolate makers generally understand that quality and social sustainability are critical elements of supporting good quality cacao and its farmers.  We just need the industrial guys to catch on.

Pay your farmer well!

IMG_8812

 

IMG_5123

IMG_5061

Izabal Agro Forest’s field staff

The heart and soul of any forest operation, today I would like to honor IAF’s field staff:

Francisco Chacon Age: 26 Place of Residence: Seja Languages Spoken: Spanish Time Spent on Izabal Agroforest: 9 years Jobs: Prunes and takes care of the cacao. Is an all around boss. Other employment: Has worked on other farms Future plans: work on the farm, marry girlfriend Opinion on Izabal Agroforest: Close to Seja, makes it easy to get to work. It’s a large farm with many different trees and there is always work available.

Francisco Chacon
Age: 26
Place of Residence: Seja
Languages Spoken: Spanish
Time Spent on Izabal Agroforest: 9 years
Jobs: Prunes, grafts, and takes care of the cacao.
Other employment: Has worked on other farms
Future plans: work on the farm, marry girlfriend
Opinion on Izabal Agroforest: Close to Seja, makes it easy to get to work. It’s a large farm with many different trees and there is always work available.

Vicente Pan Age: 45 Place of Residence: Seja Languages Spoken: Español and Kekchi Time Spent on Izabal Agroforest: 20 years  Jobs: Grafting, fertilizing, prune, clearing underbrush, planting kudzu and cacao Other Employment: Vicente has worked on other Farms before Izabal Future Plans: To continue working on the Farm and live in Seja Opinion on Izabal Agroforest: A beautiful farm with a large variety of species in both flora and fauna.

Vicente Pan
Age: 45
Place of Residence: Seja
Languages Spoken: Español and Kekchi
Time Spent on Izabal Agroforest: 20 years
Jobs: Grafting, fertilizing, pruning, clearing underbrush, planting kudzu and cacao
Other Employment: Vicente has worked on other Farms before Izabal
Future Plans: To continue working on the Farm and live in Seja
Opinion on Izabal Agroforest: A beautiful farm with a large variety of species in both flora and fauna.

 

Conrado Rodriguez Age: 57 Place of Residence: Fronteras, Izabal Languages Spoken: Spanish Time Spent on Izabal Agroforest: 27 years Jobs: Supervisor field operations Other employment: has worked on other farms Future Plans: For now just continue working on Izabal Agroforest Opinion on Izabal Agroforest:The work is best here

Conrado Diaz
Age: 57
Place of Residence: Fronteras, Izabal
Languages Spoken: Spanish
Time Spent on Izabal Agroforest: 27 years
Jobs: Supervisor field operations
Other employment: has worked on other farms
Future Plans: For now just continue working on Izabal Agroforest
Opinion on Izabal Agroforest:The work is best here

 

Name: Miguel Angel Chacon Chacon Age: 19 Place of Residence: Seja Languages Spoken: Español Time Spent on Izabal Agroforest: 2 months Jobs: brush control,  Other employment: worked in a carpenter’s shop Future plans: continue working and eventually marry girlfriend Opinion on Izabal Agroforest: Theres a lot of different jobs to do and its closer to Seja than other farms

Name: Miguel Angel Chacon Chacon
Age: 19
Place of Residence: Seja
Languages Spoken: Español
Time Spent on Izabal Agroforest: 2 months
Jobs: brush control,
Other employment: worked in a carpenter’s shop
Future plans: continue working and eventually marry girlfriend
Opinion on Izabal Agroforest: Lots of different jobs to do and its closer to Seja than other farms

Name: Jose Alvez Age: 22  Place of Residence: Seja Languages Spoken: Español Time Spent on Izabal Agroforest: 5 years Jobs: Brush control, planting seedlings, prune cacao Other Employment: Has worked on other farms Future Plans: He says he’s hoping for good luck in the future, so he can provide a nice life for himself. Opinion on Izabal Agroforest: He says they different plants here, and lots of different types of work to do.

Name: Jose Alvez
Age: 22
Place of Residence: Seja
Languages Spoken: Español
Time Spent on Izabal Agroforest: 5 years
Jobs: Brush control, planting seedlings, prune cacao
Other Employment: Has worked on other farms
Future Plans: He says he’s hoping for good luck in the future, so he can provide a nice life for himself.
Opinion on Izabal Agroforest: He says they different plants here, and lots of different types of work to do.

Name: Arnulfo Chacon Age: 34  Place of Residence: Seja Languages Spoken: Español Time Spent on Izabal Agroforest: 20 years Jobs: Taking care of the trees, working in the nursery, fertilizing plants  Other Employment: only worked on izabal agroforest, Future Plans: plans to just keep living and working on the farm Opinion on Izabal Agroforest: He says that for its size, it has a lot of different rare and special trees

Name: Arnulfo Chacon
Age: 34
Place of Residence: Seja
Languages Spoken: Español
Time Spent on Izabal Agroforest: 20 years
Jobs: Taking care of the trees, working in the nursery, fertilizing plants
Other Employment: only worked on izabal agroforest,
Future Plans: plans to just keep living and working on the farm
Opinion on Izabal Agroforest: He says that for its size, it has a lot of different rare and special trees

Agusto Chaco Age: 60 Place of Residence: Rio Dulce Languages Spoken: Kekchi and Spanish Time Spent on Izabal Agroforest: more than 20 years Jobs: maintain the garden, mow the grass, clean Other employment: worked on other farms when he was much younger Future plans: might take some time to go travel Opinion on Izabal Agroforest: There are more animals here, snakes, insects, etc

Agusto Chocoj
Age: 60
Place of Residence: Rio Dulce
Languages Spoken: Kekchi and Spanish
Time Spent on Izabal Agroforest: more than 20 years
Jobs: maintain the garden, mow the grass, clean
Other employment: worked on other farms when he was much younger
Future plans: might take some time to go travel
Opinion on Izabal Agroforest: There are more animals here, snakes, insects, etc

Name: Adelso Yavani Age: 20  Place of Residence: Seja Languages Spoken: Español Time Spent on Izabal Agroforest: 5 Years Jobs: Brush control, planting trees, trimming cacao Other Employment: Worked as campesino on other farms Future Plans: His plans for the future are to keep working and save money so he can have a good life ahead of him.  Opinion on Izabal Agroforest: this farm is better because it has more trees and animals

Name: Adelso Yavani
Age: 20
Place of Residence: Seja
Languages Spoken: Español
Time Spent on Izabal Agroforest: 5 Years
Jobs: Brush control, planting trees, trimming cacao
Other Employment: Worked as campesino on other farms
Future Plans: His plans for the future are to keep working and save money so he can have a good life ahead of him.
Opinion on Izabal Agroforest: this farm is better because it has more trees and animals

Name: Victor Manuel Ramirez Age: 40  Place of Residence: Seja Languages Spoken: Español Time Spent on Izabal Agroforest: 5 years Jobs: Grafting, Brush Control, looking after the trees  Other Employment: Has worked on other farms Future Plans: No plans as of yet Opinion on Izabal Agroforest: The woods they grow here are different, they are rare woods that not a lot of other people grow

Name: Victor Manuel Ramirez
Age: 40
Place of Residence: Seja
Languages Spoken: Español
Time Spent on Izabal Agroforest: 5 years
Jobs: Grafting, Brush Control, looking after the trees
Other Employment: Has worked on other farms
Future Plans: No plans as of yet
Opinion on Izabal Agroforest: The woods they grow here are different, they are rare woods that not a lot of other people grow

Pending are: Juan Castillo, Victor Castillo, Javier Sosa, Marta Estrada, Juan Tiul, Luis Chacon y Rigo Chacon.

Gracias hermanos.

Thank you to Jasper Lyons & Jack Betz for photographing and interviewing IAF staff members.

An old story

Embera girls holding cacao pods

Embera girls holding cacao pods

Over the last few months I’ve heard a lot of hype about where the Cacao market is heading.  Huge investments are being raised in response to rising demand.  And its true the outlook is good, especially considering the growing premium market and untapped Asian markets that have barely begun consuming chocolate.  60% of the world is Asian so, there’s reason to be optimistic.  But…  I’m seeing a tendency toward the mistakes of the past.

Although Cacao is originally from the Amazon basin, it was most famously consumed by the Mayans in Southern Mexico, and Central America.  Today most of it is grown in Western Africa and consumed in the North America and Europe.  These are huge mono-cultures stretching across thousands of kilometers.  Countries like Ghana and Madagascar seem to be providing a steady supply of good quality fruit, but others have struggled and the cacao industry is rife with problems, political and biological.  Once again we’re seeing this industrial tendency to do things as big and as cheap as possible, leveraging economies of scale to the bitter end.

Broadly speaking, mono-cultures by their very nature are more susceptible to disease and insect attacks, which makes organic or low impact agriculture very very difficult.  Throughout cacao’s industrial history, we’ve seen huge single year drops in production due to out of control diseases.  They also tend to be one dimensional in that if you have a biological disaster or the market tanks, that’s it, your financial model breaks. Its one of the many reasons I’ve been a proponent of agroforestry for so long, I just can’t wait until we see it at an impact scale.

I’ve seen proposals for industrial projects throughout Latin America and its really just a repeat of the past, basically the attitude is: let’s take the latest, hottest commodity and plant it to the end of the horizon.  When I see these, I can’t help but wonder what kind of technical advice these proposals are based on?  Why aren’t these proposals more diversified?  What are the environmental and social impacts?

A productive cacao tree is sensitive, requires consistent phytosanitation and silviculture; basically it is generally susceptible to biological risk.  In my opinion an industrial cacao plantation should not exceed 200 hectares and larger projects would do well to geographically separate farms.   There’s a reason most of the world’s cacao is grown by small scale farmers, its never worked as an industrial crop.  Cacao fund managers should carefully assess management teams and conduct thorough feasibility studies, or they might see an old story repeat itself.   Don’t get me wrong, I think cacao is wonderful and has huge upside, I’m actually planting a lot of it, but there’s no doubt in my mind that the accepted (institutional) model can be improved.

(Click images for a higher resolution view)

My farm's tri-level approach to cacao cultivation

My farm’s tri-level approach to cacao cultivation

HPIM0721

A shoot grafted with heirloom stock in our nursery

Young Mahogany and cacao mixed species stand

Young Mahogany and cacao mixed species stand

Diseased Cacao tree, location not cited

Ah monoculture…

Cacao supply by country