Can cocoa farming simultaneously protect forests, improve rural livelihoods, and comply with international market regulations? In Ecuador and Peru, an innovative public-private partnership is proving that this is possible.
Cocoa production in Latin America faces complex challenges. Producers must respond to the growing demand for high-quality cocoa while adapting to stricter international standards, including the EU Deforestation Regulation (EUDR) and the EU Organic Regulation. These requirements call for greater traceability, deforestation-free supply chains, and robust environmental and social safeguards.
The develoPPP programme, an initiative of the German Federal Ministry for Economic Cooperation and Development (BMZ), is designed precisely for such opportunities — where private sector engagement and development cooperation can deliver mutual benefits. Within this framework, the Swiss chocolate company HALBA and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) through the Sustainable Agriculture for Forest Ecosystems (SAFE) project in Ecuador, on behalf of BMZ, have partnered with local producer organisations to promote a transition towards dynamic agroforestry systems in cocoa production.
Dynamic Agroforestry: A Sustainable Approach
Dynamic agroforestry offers a practical solution to many of the sector’s challenges. By cultivating cocoa alongside complementary crops such as plantain, banana, and shade trees, farmers enhance soil fertility, improve biodiversity, and increase resilience to climate change. This approach allows for sustainable efficiency of production while also improving household food security and diversifying income sources.
The objective of the project is the implementation of dynamic agroforestry as a sustainable solution to improve cocoa production, ensure compliance with international regulations, and empower producers through training, digitisation processes, and organisational strengthening.
Since its launch in 2020, the partnership has worked closely with the UNOCACE cooperative in Ecuador – with approximately 2,000 to 2,500 farmers – and the ACOPAGRO cooperative in Peru – with approximately 2,000 to 2,100 farmers. The current project phase (April 2024 – March 2027) builds upon previous achievements and is structured into six key workstreams:
- Boosting cocoa efficiency with dynamic agroforestry (DAF)
Planting and replanting DAF plots, grafting higher-yield cocoa, and diversifying value chains to improve productivity, soil health, and farmers’ incomes.
- Scaling up agroforestry through partnerships and training
Expanding DAF via stakeholder engagement, model plots, training, and research to drive wider adoption.
- Strengthening UNOCACE and member cooperatives
Improving governance, business models, and capacity to build resilient, sustainable, competitive producer organisations.
- Ensuring EUDR compliance for cocoa exports
Supporting traceability and control systems so producer organisations can meet European and international market requirements.
- Empowering youth and women in cocoa
Promoting inclusion, training, entrepreneurship, and access to resources through innovative financing tools, inspired by the Fairtrade Premium Fund.
- Linking agroforestry to climate finance
Measuring carbon benefits of DAF, simplifying monitoring, and connecting projects to climate finance opportunities.
SAFE: Strengthening Market Access for Deforestation-Free Value Chains
This collaboration is also a key result of the GIZ-SAFE project, which works to support Ecuador’s transition to sustainable and deforestation-free value chains. SAFE provides the necessary tools and approaches to prepare value chain actors – from public institutions to private sector companies – for this transition. Through partnerships with international buyers, like this partnership with HALBA, small producers are connected to European markets. These alliances not only facilitate trade but also ensure that supply chains meet deforestation-free criteria, strengthening Ecuador’s position as a reliable partner for sustainable production.
Local Action, Global Impact
This collaboration is more than a technical project. It is a model for inclusive and climate-smart value chain development. By connecting small-scale producers to international markets and strengthening their organisational capacities, the project contributes to the creation of resilient, deforestation-free cocoa supply chains. So far, around 260 farmers with UNOCACE and ACOPAGRO have already implemented agroforestry systems.
The project strengthens cocoa production through sustainable practices, improving producers' competitiveness in international markets and ensuring the sector's long-term economic, social and environmental viability.
Ultimately, this partnership shows that compliance with international regulations can drive innovation rather than act as a barrier. For producers, it improves livelihoods, protects ecosystems, and opens access to global markets while creating additional income and empowering women and youth in key value chain roles. For consumers, it means every bar of chocolate supports a more sustainable and inclusive future.
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Commissioning Party |
German Federal Ministry for Economic Cooperation and Development (BMZ) |
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Partner |
HALBA/COOP |
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Duration |
April 2024 – March 2027 |
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Funding |
BMZ, HABLBA and develoPPP GIZ |
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Budget |
2.009.150 EUR – 1.110.150 EUR from HALBA and 899.000 from GIZ |
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Region |
Ecuador and Peru |
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Programme Manager |
Ute Sonntag, SAFE Ecuador |
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Contacts |
