Coffee, carbon, smallholders
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Presentation by Ina Porras at “The role of agro-ecology in exploring innovative, viable adaptation measures for resilient smallholder coffee landscapes” Discussion Forum on the first day of the Global Landscapes Forum 2015, in Paris, France alongside COP21. For more information go to: www.landscapes.org.
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Coffee, carbon, smallholders
- 1. DOCUMENT TITLE 1 Ina Porras 05/12/2015Author name Date Ina Porras 05/12/2015 Global Landscape Forum Session: The role of agro-ecology in exploring innovative, viable adaptation measures for resilient smallholder coffee landscapes, Paris, 5th December, 2015 Coffee, Carbon, Smallholders By Ina Porras International Institute for Environment and Development
- 2. DOCUMENT TITLE 2 Ina Porras 05/12/2015 Payments for Ecosystem Services They are conditional transfers made to change behaviour For coffee/carbon it means: Better farm practices reduction of GHG Certified carbon credits Benefit-sharing Cooperatives Potential for Insetting
- 3. DOCUMENT TITLE 3 Ina Porras 05/12/2015 www.iied.org BIOGAS/ BIOSLURRY COFFEE REFORESTATION
- 4. DOCUMENT TITLE 4 Ina Porras 05/12/2015 An example from Peru Carbon/coffee/timber NORANDINO (Fairtrade, organic) Upstream/ downstream small farmers
- 5. DOCUMENT TITLE 5 Ina Porras 05/12/2015 Farmers on the upper part of the watershed restore degraded cloud forest. They keep the timber but it’s a long-time activity. They are poor, cannot invest, and need support. Restoration improves water regulation and benefits downstream farmers. But they are also poor. There is a clear benefit, but little ability and WTP from downstream farmers to encourage upstream restoration. Upper watershed/ Choco: More than 3000 m.a.s.l Middle of the watershed: about 1100 m.a.s.l Smallholder coffee farmers Subsistence farmers 350 in project Proposal: Carbon credits from reforestation upstream – sold to coffee buyers - as option to provide funding. Sierra Piura, Peru
- 6. DOCUMENT TITLE 6 Ina Porras 05/12/2015 Smallholder coffee farmers International market 12 roasters and traders in the US and EU 2 non-associated producer organisations Selling coffee to Norandino Parchment coffee Green coffee 3 member associated 1st level organisations (1700 coffee farmers) Some groups sell coffee to Norandino. Some groups use Norandino’s processing plant but trade coffee autonomously Green coffee Norandino Located in Piura Coffee: Processing and trading Carbon: buys carbon rights from farmers, coordinates local implementation with Progreso, sells carbon offsets to buyers. Input providers (tools, fertilizers, etc) Public institutions: municipalities, FONCODES, regional government Local NGOs: Progreso, AVSF INPUT PROVIDERS: Financial institutions (Coopac Norandino, Banco Continental); Transport, equipment providers CERTIFICATION: Cooperation agencies (Equal exchange, CCA) Production Coffee mill Collection (acopio) Transformation Commercialization Export Roaster Distribution Final consumer THE COFFEE VALUE PROCESS Explore the opportunities to add value within existing market setting: INSETTING
- 7. DOCUMENT TITLE 7 Ina Porras 05/12/2015 Smallholder coffee farmers CEPICA FE: 240 farmers in the project ProClimate Technical advisor & certification support Progreso Implementation & technical assistance Subsistence farmers 350 in project Insetting Café Direct, UK; Bewleys, IREx Plus other carbon clients (3PValue) Activities upstream improve health of the ecosystems (water, soil) at the base of the coffee chain. INSETTING PROPOSITION: Coffee traders buy carbon offsets that benefit the resilience of ecosystems at the point of point of origin in the value chain 3 member associated 1st level organisations (1700 coffee farmers) Some groups sell coffee to Norandino. Some groups use Norandino’s processing plant but trade coffee autonomously International market 12 roasters and traders in the US and EU Norandino Located in Piura Coffee: Processing and trading Carbon: buys carbon rights from farmers, coordinates local implementation with Progreso, sells carbon offsets to buyers. CERTIFICATION: Cooperation agencies (Equal exchange, CCA) Generation of offsets Local implementation, training,, field supervision Project developer: aggregation, coordination, technical management Verification Offset buyers THE CARBON VALUE PROCESS Certification Marketing
- 8. DOCUMENT TITLE 8 Ina Porras 05/12/2015 Many opportunities Farmers Additional funding to support adaptation to CC Potential for other ecosystem services High value product – opportunity for Insetting Cooperatives Existing infrastructure, access to inputs, buyers portfolio, and organisation Negotiation power from bottom to top Certifiers Existing well- known standards, recognised by consumers. Farmers used to perform following regulations Buyers Informed buyers with higher WTP Understanding risks of CC for product quality and delivery Increasing pressure to reduce GHG emissions
- 9. DOCUMENT TITLE 9 Ina Porras 05/12/2015 And many challenges Farmers Cooperatives Certifiers Buyers •Standard overload for farmers, and for buyers? •Overly expensive compliance costs. Marketing •No marketing skills to sell carbon credits •Declining international prices (short-term market signals versus long-term CC investments) •Most focus on forestry, not agriculture and smallholders need for core co-benefits •Holistic approaches too expensive •Monopoly of information along chain Technical •Small capture per farm means per capita carbon revenue versus high transaction costs •Benefits likely at group – but needs clear link back to farm •Ex-ante and additionality issues Unclear benefit-share
- 10. DOCUMENT TITLE 10 Ina Porras 05/12/2015 What next? “Co-benefits” and “core benefits” SDGs Bring forward existing lessons Sobering lessons for expectations Alliances Regulation needed to revitalised carbon market
Editor's Notes
- <number>
- Prepared with interviews in field and Reyes Cordoba, J. F. (2014). Experiencia de la CEPICAFE-NORANDINO. Agroexportación de productos de pequeños productores organizados. Piura, NORANDINO. <number>
- Prepared with interviews in field and Reyes Cordoba, J. F. (2014). Experiencia de la CEPICAFE-NORANDINO. Agroexportación de productos de pequeños productores organizados. Piura, NORANDINO. <number>
- Additional funding can support improvements at farm level Farmers are already organised, with access to markets and buyers who already care Farmers are used to standards and following systems Funding required mostly on short-term, to provide long-term benefits, on and off the farm There are pressures internationally and at country level to value ES – especially carbon for CC Pressure for national deals, e.g. on water <number>
- Marketing: Likely overloading of standards Carbon prices going down, Projects do not know how to sell Technical Most focus is on forestry and agriculture tends to be left out Most existing standards not catering for smallholder agriculture needs Very high transaction costs Holistic approaches for project delivery that benefit farmers (e.g. CamBio2) too expensive and difficult to upscale Technical monopoly / deficit of information along chain Unclear benefit-share Small capture per farm means benefits have to be at group level – but benefit share must be clear Ex-ante sales needed for upfront funding, but not accepted by most standards <number>