Ecuador

Although Ecuador accounts for only 10 per cent of global cacao production, it is the source of 60 per cent of the rare Arriba Nacional variety. HALBA aims to secure and expand the production of this Ecuadorian high-grade cacao bean for its chocolate products, as chocolate made from Arriba Nacional is well loved in Europe for its distinctive flavour profile.

However, cultivating the cacao plant is difficult, as it requires ample shade and nutrient-rich soil. More and more Ecuadorian farmers are therefore turning to hardier, high-yield varieties. These are often grown in monocultures across large expanses following the clearance of areas of tropical forest. The farmers’ reasoning is that planting more cacao trees leads to higher yields. In reality, however, this is not the case as monoculture farming depletes the soil, making it infertile. Without the shade from trees or other taller plants, cacao plants dry out more quickly and are more vulnerable to diseases and pests. Pesticides and synthetic fertilisers used by the farmers to combat these problems damage the soil further and pose health and financial risks to farmers. Additionally, the deforestation threatens the habitats of plant and animal species in one of the world’s most biodiverse countries.

HALBA, together with project partners Coop and GIZ, is seeking to retain the Arriba Nacional cacao variety for its chocolate production, protect Ecuador’s rich biodiversity and improve farmers’ livelihoods. To this end, the partners support Ecuadorian farmers in the UNOCACE producers’ organisation across several provinces in the mixed cultivation of cacao, fruit trees and high-grade timber trees – a method known as dynamic agroforestry (DAF).

In this form of mixed cultivation, Arriba Nacional is grown under conditions similar to its natural surroundings in the tropical rainforest. Ground-level crops like cassava, maize or beans are planted alongside it. Taller fruit trees – banana, orange, mango, avocado – and high-grade timber species provide shade to the cacao trees.

To increase farmers’ crop yields and income using DAF, and to safeguard the quality of high-grade cacao yields, the project promoted the following activities in Ecuador between 2020 and 2023, with a budget of around EUR 3.4 million:

• Introduction of a new organisational structure for the UNOCACE smallholder organisation
• Provision of training to UNOCACE staff on creating DAF plots with high-grade cacao
• Installation and monitoring of DAF cultivation plots
• Promotion and dissemination of DAF practices through workshops, field schools and through producers sharing their experiences

GIZ provided support with the introduction of the new organisational structure, the evaluation of existing structures and the drafting of a business plan. HALBA supported the installation and monitoring of the new DAF plots and oversaw certification of the project under the Gold Standard for carbon offsets.

Targeted training enabled the farmers participating in UNOCACE to create DAF plots. Mixed cultivation leads to better yields: shade protects the soil and cacao plants, while organic matter cut off from the surrounding vegetation enriches the soil as natural compost. Farmers no longer have to resort to pesticides and synthetic fertilisers, thereby reducing their costs. The environment benefits too. Cacao plants remain healthier, become more resilient and produce more fruit. Selling high-grade cacao beans, as well as other crops like beans, cooking and dessert bananas, avocados and cassava, increases farmers’ income. A positive side-effect is that these by-products also contribute to a balanced diet. In addition, new producers have joined UNOCACE and are benefiting from the project.

The mixed cultivation system promotes biodiversity and helps conserve the habitats of endangered animal and plant species. As a result of DAF, the participating farmers are now reforesting areas that had previously been cleared and protecting existing rainforests from deforestation.

With the support of the project, chocolate manufacturer HALBA is ensuring the quality and quantity of Arriba Nacional high-grade cacao available for its products.

• The UNOCACE cooperative improved cacao production through the use of DAF in ten provinces of Ecuador.
• Nearly 600 smallholders now manage agroforestry plots covering a total of 635 hectares.
• All participating smallholders have seen an increase in their income.
• 25 trainers from UNOCACE received training in cacao cultivation under the DAF method.
• As a result of the project, HALBA achieved a significant increase in quality in the sourced cacao beans.