Peru Cacao Alliance Phase II

In the third quarter of Year 6 (April – June 2022), PCA faced significant challenges due to delays in the production period, which led to project partners needing to modify their strategies for collection and assistance to producers. Despite these challenges, the sector was able to quickly react, and the project's annual goals are still expected to be met. PCA is currently working on planning for the 2022-2023 cacao season, which will involve producers investing in their crops to carry out environmentally sustainable management processes. The project will also continue to implement pilots and manage model plots with leading producers, which have shown a reduction in the presence of pests and diseases. This will allow for the production of high-quality cacao that does not rely on pesticides and can be exported internationally. To further strengthen work with partner organizations, PCA will organize NIPO and IPM trainings in July for technicians who can then replicate and promote these trainings with partners. During the next quarter, PCA will plan meetings with key partners and stakeholders to report on the achievements made over the project's second phase, such as the 60% increase in income for partnered family farmers and the 137% increase in revenue from cacao production. In the third quarter of 2022, PCA facilitated market access for 36 end buyers, including 18 international and 18 domestic companies. The volume of cacao sold by PCA member organizations from April to June 2022 was 3,592.98 MT, of which 2,788.09 MT were organic and 804.89 MT were conventionally grown. The average premium over the NYSE cacao price was $533, and the average price for organic cacao beans was $2,611.49/MT. However, PCA faced several challenges in fulfilling purchase agreements, including delays in cacao collection due to climate change, the presence of chemicals in cacao beans, and container shortages. PCA is taking actions to address these limitations, including intensifying the use of live and dead ground barriers, implementing cover crops, and providing training on NIPO and IPM. The project is also promoting the use of fertilizers from Abonos Vivos - La Calera, which is a good alternative to improve the biological and chemical aspects of soils. In terms of increasing cacao farmers' productivity and post-harvest quality, PCA has developed and implemented a methodology for the widespread adoption of new technological packages for agroforestry systems among smallholder farmers. The project has trained 160 families, including 29 from the Ucayali region and 131 from the San Martin region. The main topics covered included NIPO, IPM, and Fertigation.