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USAID signs an agreement with Palladium to support the second phase of the Peru Cocoa Alliance (2016-2021)

15 September 2016, Washington D.C - On September 1, 2016, Palladium, and the United States Agency for International Development (USAID) signed a five-year, US $24.9M Cooperative Agreement to combat poverty in Peru. The new program will further develop dynamic agroforestry market systems, thereby providing a viable alternative to the illegal cultivation of coca, while simultaneously preventing the destruction of tropical forests. To ensure success of this new phase of programming, Palladium has convened 16 private enterprises that are leaders in the Peruvian and International cacao/chocolate value chain, who have collectively committed to invest US $53M towards implementing this innovative technical assistance and productivity-improvement program.

This new Cooperative Agreement builds on the first phase of the Peru Cocoa Alliance program (2012 – 2016), USAID’s largest Global Development Alliance, and the largest, donor-supported agroforestry and cacao project in the world. The main result from the program’s first phase was supporting 17,000 smallholder farmers plant specialty, high-end cacao on 23,000 hectares of land in San Martín, Huánuco y Ucayali regions. Furthermore, all hectares are georeferenced and included in a centralized monitoring system, allowing the Peru Cocoa Alliance to manage the largest database of fine flavoured cacao producers in the world.

The Peru Cocoa Alliance will increase incomes of 20,000 rural families by 30% in the target regions by implementing the largest technical assistance program ever conducted in the Peruvian Amazon. In addition, the Peru Cocoa Alliance will significantly improve productivity on the agroforestry plots of small producers; it will improve product quality so Peruvian cacao will reach differentiated markets at higher prices; and it will facilitate large-scale access to credit to support technical packages for cacao, plantain and wood products, among others. These activities and results from the program’s second phase will concurrently contribute to reforestation, biodiversity protection, and economic empowerment of women.

Palladium has mobilized a significant group of investors, buyers, cooperatives, agroindustrial leaders, NGOs and service providers committed to join in the second phase of this program, including Althelia Climate Fund, Barry Callebaut, ICAM, Cacao Ucayali River, AMT, Exportadora ROMEX, Agrobanco, Inkacrops, ACOPAGRO, Reforestadora Amazónica, RAMSA, Honda y Husqvarna, NaanDanJain, San Fernando, Yara, and Uniterra. The Peru Cacao Alliance will maintain offices in Lima, with regional offices in San Martín, Huánuco y Ucayali.

The concepts of invest more, produce more, and protect more guide this new agreement with USAID. As per Eduardo Tugendhat, Palladium’s Strategic Advisor to the Peru Cocoa Alliance: “This Alliance represents a new model not only for the alternative development sector, but for the global cacao industry. Using U.S. Government resources to leverage private investment to protect forests is a highly creative solution that will significantly expand cocoa production while maintaining quality, strengthen linkages between smallholder producers and markets, and provide a realistic alternative to illicit production.”

 

About Palladium

Palladium is a global leader in the design, development and delivery of Positive Impact— the intentional creation and measurement of enduring social and economic value. We work with corporations, governments, foundations, investors, communities and civil society to formulate strategies and implement solutions that generate lasting social, environmental and financial benefits.

For the past 50 years, we have been making Positive Impact possible. With a team of more than 2,500 employees operating in 90 plus countries and a global network of over 35,000 technical experts, Palladium has improved—and is committed to continuing to improve—businesses, economies, societies and most importantly people’s lives.

thepalladiumgroup.com

Contact

Jose Iturrios, Chief of Party, Peru Cocoa Alliance, jiturrios@perucacao.org

Amanda Fernandez, Project Director, Peru Cocoa Alliance, amanda.fernandez@thepalladiumgroup.com