The main objective of this study was to estimate the reference value of the living income of cacao households benefiting from the USDA Food for Progress Colombia -C4D project, and its difference with the real income, to determine whether the income of these households is sufficient to achieve decent and resilient living standards. Also, from the analysis of the differences found between those households that achieve a decent income and those that do not, to generate strategic recommendations for closing the gaps.
The study was conducted between April and December 2022 by Fundación Solidaridad Latinoamericana and Muttuo Consultores, using the Anker methodology contextualized to the intervention regions, based on primary information collected in field surveys, focus groups by cluster and information collected in the baseline study of the project, as well as secondary sources such as the National Administrative Department of Statistics (DANE).
Living Income
Dignified income is understood as "the net annual income needed by a household in a particular place to afford a decent standard of living for all household members" (LICOP 2021). In other words, it goes beyond the concept of the poverty line or basic needs, and includes elements such as a nutritious and balanced diet, decent housing, education, health, transportation, clothing, other essential needs, and provision for unexpected events.
The study estimated the value of decent income differentiated by geographic cluster and by household size, and showed that for 2021, the reference value of decent income for cluster 1 (Cesar, Magdalena and La Guajira), with a household size of 4 persons is $28, 829,110 COP, for a 3-person household in cluster 2 (Santander and Bolivar) it is $23,616,296 COP, for a 4-person household in cluster 3 (Antioquia and Cordoba) it is $27,784,113 COP, and a 3-person household in cluster 4 (Caldas, Huila and Tolima) it is $23,979,886 COP.
Real Income
The real income corresponds to the net income, in kind or in cash, that is received or produced by the household during a 12-month period, composed of three elements: the net agricultural income of the farm (from the main crop, in this case cacao, and from other crops or livestock activities), the household's off-farm income, and the contribution of non-cash income (family labor and self-consumption of food on the farm).
The annual net income in 2021 for cluster 1 households, with a household size of 4 persons, was calculated at $7,799,410 COP (2,084 USD) per year, for cluster 2 at $6,248,164 COP (1, 669 USD) for a 3-person household, for cluster 3 at $7,187,791 COP (1,920 USD) for a 4-person household and cluster 4 was calculated at $5,595,211 COP (1,494 USD) for a 3-person household.
It is evident that there is a generalized problem of profit margin in cacao since, in the total sample, only 34% of the farms achieved a positive profit margin per hectare and on average for the total sample, the producers present losses per hectare of cacao of $362,000 COP (96 USD) per year.
The behavior of productivity and profit margin of cacao cultivation vs. net cacao income was analyzed, identifying that those that achieve a positive income are farms with productivity higher than the average productivity of the sample (47% of the farms), with an average size of 3 people, and invest about 80 days per hectare of cocoa per year (28 days per year more than those that do not achieve a positive cocoa income). The real annual income of households on farms with above-average productivity is more than 100% higher than that of the opposite segment.
Living Income Gap
When calculating the gap between the living income and the real income of households, it was found that, in the sample as a whole, only 5.3% of households reach the decent income (44 households). Although few households close the gap, and therefore no representative conclusions can be drawn, these households that close the gap offer guidance to the C4D program. The farms of these households have an average productivity of 734 kg/ha, well above the average productivity of the sample (391 kg/ha), and have 3.5 ha under cacao cultivation. They derive their income mainly from net cacao income (32%), other household income (28%) and family labor (19%).
These findings are interesting, considering that the C4D project has the potential to intervene in net cacao income, to promote family labor as a driver of productivity, but also as a potential income for the farm, and to promote and enhance complementary crops to cacao, and crops for self-consumption.
However, it is important to note that the gap found is high. This, together with the multiplicity of factors that influence an analysis of decent income and real income, implies that one should not expect to close the decent income gap with cacao. For a cacao household to have a higher probability of closing the gap, it is necessary to look for other sources of income in addition to cocoa cultivation.
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This study is being carried out within the framework of the “USDA -Cacao for Development” (C4D) project in Colombia, under the overall coordination of Partners of the Americas (POA). The objective of this study is to analyze the chili bell pepper value chain in order to strengthen the cocoa sector and improve the productivity and income of cocoa producers who produce chili as a complementary crop. The project's national coverage is limited to 52 municipalities in 10 departments, which are grouped into 4 clusters: Cesar, La Guajira and Magdalena (cluster 1); Bolivar and Santander (cluster 2); Antioquia and Cordoba (cluster 3); and Caldas, Huila and Tolima (cluster 4).
The information presented in this study was obtained from several sources, including: a literature review, multiple interviews with key actors, and a statistical analysis of production, export and import data. The results of the study are expected to provide useful information for the planning and implementation of the C4D project by prioritizing and identifying the opportunities and potential of complementary crops to cocoa, such as chili peppers, to improve the income conditions of producers.
The production of chili peppers has become a product of interest in international trade due to growing global demand driven by the food industry, chefs and consumers. Colombia has experienced exceptional growth in its production, but still has great potential to increase its production and export of chili peppers. Despite the increase in per capita consumption of chili peppers in the United States, domestic production has declined and imports have increased significantly, providing an opportunity for Colombian growers to meet this demand. To take advantage of the growing export market for chili peppers, it is important for Colombian farmers to link up with exporting companies that can provide knowledge and experience to improve production.
It is recommended that projects be carried out in areas near the departments of Valle del Cauca and Cauca, Costa Norte Nariño, Tolima, Huila and Santander Sur Norte, since these regions have the appropriate climatic and geographic conditions for its cultivation and have great potential for chili bell pepper production. By implementing technified and mechanized agronomic practices, farmers can improve the yield and profitability of the chili bell pepper crop, meeting the quality and quantity standards required for the international market.
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Plantain cultivation in Colombia has been an important source of income and employment in the producing regions. However, the traditional association of plantain cultivation with coffee, cocoa, cassava and fruit trees, as well as the lack of investment in farm adaptation, renovation, fertilization and drainage, have led to low productivity and quality in production for export, affecting the competitiveness of this crop in international markets.
The USDA Food for Progress - Cacao for Development (C4D) project, under the overall coordination of Partners of the Americas (POA), seeks to strengthen Colombia's cocoa sector by improving the productivity and livelihoods of cocoa producers through economically viable, agriculturally sustainable diversified farming systems and equitable marketing models with collection and processing of products for the market. As part of this initiative, cocoa-associated crops have been incorporated into this study, with bananas playing a key role. The study has an intervention area defined by POA in ten Colombian departments, grouped into four clusters as follows: cluster 1: Cesar, La Guajira and Magdalena, cluster 2: Bolívar and Santander, cluster 3: Antioquia and Córdoba and cluster 4: Caldas, Huila and Tolima, and aims to analyze the plantain value chain in these intervention zones, exploring the commercialization structures and dynamics of the plantain crop.
Plantain cultivation in Colombia has been a traditional sector of peasant economy, subsistence for small producers, with a high geographical dispersion and of great socioeconomic importance from the point of view of food security and employment generation. Given its relevance, this section focuses on the main conclusions and provides a series of recommendations aimed at improving and energizing the commercialization of this crop.
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The cultivation of Tahiti lime in Colombia is an important source of income and employment in the producing regions. However, the association of Tahiti lime with other crops such as cocoa is not very frequent, due to the particular conditions of this crop. To establish this crop as an important income generator, investment in farm adaptation, fertilization and drainage is required to generate acceptable productivity and quality for export. The USDA Food for Progress - Cacao for Development (C4D) project, under the overall coordination of Partners of the Americas (POA), seeks to strengthen Colombia's cocoa sector by improving the productivity and livelihoods of cocoa producers through economically viable, agriculturally sustainable diversified farming systems and equitable marketing models with collection and processing of products for the market.
As part of this initiative, complementary crops to cocoa have been incorporated into this study, where the Tahitian acid lime can play an important role. The study has an intervention area defined by POA in ten departments of Colombia, grouped into four clusters as follows: cluster 1: Cesar, La Guajira and Magdalena, cluster 2: Bolivar and Santander, cluster 3: Antioquia and Cordoba and cluster 4: Caldas, Huila and Tolima, and aims to analyze the value chain of lime cultivation in these intervention areas, exploring the structures and dynamics of marketing. This research seeks to provide valuable information that can contribute to the project for decision-making to improve the productivity and competitiveness of the Tahiti lime crop in the prioritized producing regions.
Colombia's potential for growth in the Tahiti lime subsector is evident. However, it is important to highlight that there are a series of latent sanitary risks that must be taken into account when establishing new areas, as well as the development of growth in research for the mitigation and control of these sanitary enemies present in citrus. The Tahiti lime in Colombia has marked a great development trend in the productive regions, generating permanent production throughout the year, with production peaks between May-June and October-November; this advantage of producing all year round allows Colombia to position itself in new markets and guarantee supplies throughout the year. The main producing areas are Valle del Cauca, Santander, Tolima, Caldas and Antioquia; 60% of the production of Tahiti lime comes from small producers who ensure the sustainability of their households with these minimum profitable units, finding in this activity the economic balance, a product necessary to improve their living conditions.
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Mango cultivation in Colombia is an important source of income and employment in the producing regions. However, the traditional association of mango cultivation with other crops such as cocoa is not very frequent, due to the particular conditions of this crop and normally there are producers who have some fruit trees such as mango, which are for self-consumption or established to generate shade, but are not considered or managed as a source of relevant income, for which investment is required in the adequacy of farms, renovation, fertilization and drainage, to generate productivity and quality in production for industry or even export.
In this regard, the USDA Food for Progress - Cacao for Development (C4D) project, under the overall coordination of Partners of the Americas (POA), seeks to strengthen Colombia's cocoa sector by improving the productivity and livelihoods of cocoa producers through economically viable, agriculturally sustainable diversified farming systems and equitable marketing models with collection and processing of products for the market. As part of this initiative, complementary crops to cocoa, where mango can play an important role, have been incorporated into this study.
The study has an intervention area defined by POA in ten departments of Colombia, grouped into four clusters as follows: cluster 1: Cesar, La Guajira and Magdalena, cluster 2: Bolivar and Santander, cluster 3: Antioquia and Cordoba and cluster 4: Caldas, Huila and Tolima, and aims to analyze the value chain of mango cultivation in these intervention areas, exploring the structures and dynamics of marketing.
Given the importance of the mango chain in the productive departments analyzed in this document, and taking into account the arguments outlined above, it is considered essential to strengthen the socio-business and agro-productive capacities of the regions. To achieve the growth and competitiveness of the sector, it is necessary to support and accompany small and medium producers in the improvement of productive and commercial processes; which will allow obtaining fruits of better quality, greater ease and negotiation capacity for access to the national and international market.
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The cultivation of cassava in Colombia has been characterized as predominantly a peasant economy product, with traditional management practices, little intensive use of agricultural machinery and chemical inputs, and little technological adaptation. In most cases, cassava is managed as a monoculture, but it can also be associated with other agricultural products such as cocoa.
This study aims to analyze the cassava value chain in the context of the USDA Food for Progress - Cacao for Development (C4D) project. C4D is an investment program led by Partners of the Americas (POA), funded by the United States Department of Agriculture (USDA). The project has a defined intervention area in ten Colombian departments, grouped into four clusters as follows: cluster 1: Cesar, La Guajira and Magdalena, cluster 2: Bolívar and Santander, cluster 3: Antioquia and Córdoba, and cluster 4: Caldas, Huila and Tolima.
The main objective of this study is to deepen the analysis of the cassava value chain and its actors, identifying price structures and dynamics in the different marketing channels and revealing the main bottlenecks. The methodology employed includes a review of relevant literature, surveys and interviews with key actors in the value chain, and statistical analysis of the data collected.
In conclusion, cassava production in Colombia is essential for food and nutritional security, as well as for employment and income generation for rural dwellers. However, the commercialization of this crop in Colombia has significant weaknesses in terms of institutions, infrastructure, adoption of good practices, abuse of dominant position and lack of information.
Although cassava production in Colombia is continuous due to its wide edaphoclimatic offer, informality, lack of articulation and added value continue to be a problem in the commercialization chain.
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This study is part of the productive commitment and improvement of the value chains that have been identified under the USDA Food for Progress - Cacao for Development (C4D) project. C4D is a United States Department of Agriculture (USDA) investment program to strengthen Colombia's cocoa sector that aims to improve the productivity and livelihoods of cocoa producers by helping them achieve economically viable, agriculturally sustainable diversified farming systems and equitable marketing models with collection and processing of products for the market. The overall coordination of the project is carried out by the Partners of the Americas (POA) team.
This research provides more tools to the C4D project by focusing on the cocoa value chain and its actors, as well as on the value chains of associated and/or complementary crops grown by some producers in the C4D program intervention zones. Within this framework, the five crops identified or with favorable prospects in cocoa plantations are: chili bell pepper, Tahitian lime, mango, plantain and cassava. The analysis will delve into the price structures and dynamics within different marketing channels for cocoa and selected associated/complementary crops, revealing the main factors that affect prices and value for producers and producer organizations, as well as presenting other data related to the Colombian cocoa sector.
The study has an intervention area defined by POA in ten departments of Colombia, grouped into four clusters as follows; cluster 1: Cesar, La Guajira and Magdalena, cluster 2: Bolivar and Santander, cluster 3: Antioquia and Cordoba and cluster 4: Caldas, Huila and Tolima.
The first section of each chapter's report contextualizes and provides statistical information on the crop and its particularities in Colombia, such as: national market, registered trends, planted areas, production, yield, trade flows, using the case of other Latin American countries as a reference. Subsequently, the actors in the chain are mapped and particular aspects of each of the marketing channels are analyzed.
In conclusion, cocoa is an important crop in Colombia that contributes to the country's sustainable development. In addition, cocoa cultivation is expected to contribute to the substitution of illicit crops and provide better economic opportunities for rural communities, allowing them a legal and dignified activity.
The implementation of practices such as irrigation, pruning, fertilization, amendment application, organic fertilizer application, and integrated pest and disease management (IPPM) has a positive relationship with productivity. The same study showed that many of the practices (when implemented) are carried out at the farmers' own discretion, based on their experience, without following specific recommendations from extension technicians and other experts.
This demonstrates the importance of improving the coverage and quality of technical assistance services in the country in an inclusive and participatory manner. All promotion initiatives should always take into account the diversity of cocoa-producing areas, since each of the regions/cluster has different social, climatic and agricultural conditions. Therefore, best agricultural practices, technical assistance service and trainings should be adjusted to the local context to achieve better results.
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