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What’s new? Positive Impact in Practice: Peru Cacao Alliance

The Peru Cacao Alliance strengthens and develops the fine flavour cocoa market system in Peru.

What’s new?
Palladium recently began the second phase of a very successful project – the Peru Cacao Alliance. The alliance works to develop the fine flavour cocoa market that drives increased incomes for smallholder farmers and profitable investments for the private sector. Specifically, the new project will evolve from being a direct supplier of support to farmers to becoming a facilitator and capacity builder for private entities managing profitable business models in the fine flavour cocoa supply chain. We will also prioritize the economic empowerment of women. Our new phase will run until 2021.

Where will you be based?
Our head office will be in Lima but we’ll also have regional offices in Huánuco, San Martín, and Ucayali to support our nationwide focus.

Who will you be working with?
The Peru Cacao Alliance is funded by our partners at USAID and over 25 private sector firms and organizations, who are collectively doubling USAID’s investment.

What’s your goal?
Our ultimate goal is to further strengthen and develop the fine flavour cocoa market system in Peru that raises incomes for poor farmers, stimulates private sector investment and incentivises better agricultural practice.

The Alliance will raise incomes for poor farmers, stimulate private sector investment and incentivise better agricultural practice.

How will you deliver Positive Impact?
We will use three primary strategies to improve the incomes of at least 20,000 households:

1. Improving productivity where yields of cocoa have great potential to be increased.
2. Establishing direct market access for traceable, differentiated cocoa, plantain, timber, and other products; we estimate that this initiative alone will increase farmer incomes by 20–50%. Direct market access applies to smallholder farmers, farmer associations, private aggregators, traders and processing firms, many of which limit their profitability and income by using ‘middlemen’ or other brokers.
3. Facilitating rural financial services for small farmers and actors along the entire supply chain, for on-farm, service-oriented micro, small and medium enterprises, post-harvest and processing activities.

How will you make sure Positive Impact is enduring?
We prioritise the power of diverse partnerships and coalitions to ensure Positive Impact isn’t reliant on unsustainable financial or technical support. By involving local farmers and private sector organisations, the Peru Cacao Alliance Phase II is developing a market system for fine flavour cocoa that is interwoven with national and international economies. In this context, the Positive Impact is enduring specifically because it is driven by international and domestic consumers demanding sustainable and high quality products that require small farmer participation, not a process dependent on external, donor support.

If we want more info, who should we contact?
Don’t hesitate to write to Palladium’s Project Director Amanda Fernandez (Amanda.Fernandez@thepalladiumgroup.com) for more information or to discuss opportunities for your organisation to get involved.

 

The What's New series showcases our Positive Impact in practice. Follow us on Twitter, LinkedIn, Facebook and at #PositiveImpact for more.