CASE

STUDY

www.nydfglobalplatform.org

Sustainable Coffee Production

in the Brazilian Amazon: Apuí

Agroforestry Coffee Project

October 2019

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Project SummaryBrazil is the largest producer of coffee in the world. In the municipality of Apuí however, one ofthe deforestation hotspots in the State of Amazonas, coffee production has been on a steadydecline, losing land to extensive livestock production - one of the main drivers of deforestationin the Brazilian Amazon. Coffee farmers in Apuí are abandoning conventional coffee productiondue to land degradation, low output, lack of incentives, technical support and challenges inmarketing. The Apuí Agroforestry Coffee project, initiated by the Institute for Conservation andSustainable Development in the Amazon (IDESAM) in 2012, is proving to be an effective solutionto revive sustainable coffee production while also conserving and restoring the Amazon forest.

IDESAM is a non-governmental, non-profit organization founded in 2004, withheadquarters located in Manaus, Amazonas State in Brazil. Through its Climate Changeand REDD+ program, IDESAM creates and develops innovative systems and solutionsfor mitigating climate change, promoting forest conservation and lowering tropicaldeforestation. IDESAM endorsed the New York Declaration on Forests (NYDF) in 2014and through its various forest and livelihood initiatives within the Brazilian Amazon, itactively contributes to the NYDF global forest conservation targets as well as theSustainable Development Goals (SDGs).

ABOUT IDESAM

The project promotes agroecology and agroforestry with the intercropping of native trees incoffee plantations as a means to regenerate soil fertility, increase coffee production and reforestthe land. IDESAM also provides technical support and capacity building to increase the marketvalue of the Apuí agroforestry coffee and bring viable financial benefits to the coffee producers,as an alternative means of livelihood to cattle production. Within just a few years, the projecthas benefited more than 50 families engaged in the coffee agroforestry value chain, increasedthe productivity of coffee by 66%, more than doubled the annual income of coffee farmers andreforested 33 hectares of land.

idesam.org

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Background and ContextThe Amazon rainforest is the largest tropicalrainforest in the world. It hosts about 25% ofthe world’s biodiversity and 20% of the world’sfresh water. It is a vital source of oxygen and akey resource for carbon sequestration in thefight against climate change. About 60% ofthe Amazon forest is found in Brazil, which ishome to approximately 25 million people.

Why Reforest Apuí?

Apuí is a Brazilian municipality located inthe southern region of Amazonas State,along the banks of the Trans-AmazonHighway (BR-230) – the deforestation belt ofthe state. According to IDESAM, Apuí is thesecond municipality with the highestdeforestation rate in the state (next toLábrea) and the eighth in Brazil, mainly dueto the ever-expanding livestock production,where vast areas of forest are destroyed andtransformed into environmentally andsocially unsustainable pastures.

According to the ecologist Gabriel Carrero, the coffeeproduction of Apuí has been diminishing, graduallylosing land to livestock production. This is due to thedegradation of the land, caused by the high input andlow output production system that discouragedseveral producers from investing in coffee and insteadto switch to other sectors that need less resources,like extensive cattle raising.

Despite its significant past contributions to Apuí’seconomy, coffee production has gradually beenabandoned by local farmers due to lack of incentives,technical support and challenges in marketing.According to IDESAM, there are presently only 200active coffee producers in Apuí and production fell toan average of 8 sacks per hectare per year between2008 and 2012, which is much lower than themunicipality’s potential.

Despite the vast area of land the Amazonoccupies in Brazil, its contribution to theBrazilian GDP is less than 8%, making it proneto social and environmental exploitation.Unfortunately, the Amazonian economy isbuilt upon the mining of natural and mineralresources and agribusiness. About 20% of theAmazon forest cover has already been lost toextractive industries. According to Brazil’sNational Space Research Institute (INPE),there was a record increase in deforestation ofover 250% for the months of May and June2019 compared to the same months one yearago. It is predicted that 2019 could be one ofthe worst years of deforestation for theBrazilian Amazon unless strong measures aretaken by the government’s environmentalagency.

Main Benefits of the ProjectThe Apuí Agroforestry Coffee project is aninitiative created by IDESAM in an effort tocounter the rate of deforestation in themunicipality through strengthening theproduction chain of “agroecological coffee.” This strategy provided an alternative andmore sustainable form of livelihood tolivestock production for local Amazoniancommunities. IDESAM’s sustainabledevelopment strategies for the Amazonregion contribute to meeting the NYDFGoals by supporting alternatives todeforestation (Goal 4) and promoting‘green’ finance through promotinginvestment in sustainable coffeeproduction (Goal 8). This work also helps toachieve the Sustainable DevelopmentGoals (SDGs) through Goal 1 on povertyreduction; Goal 8 on decent work andeconomic growth; Goal 12 on responsibleconsumption; Goal 13 on climate action andproduction; and Goal 17 on partnerships toachieve the goals.

Socioeconomic ImpactsThe main objective of the project is to providean alternative source of income for farmers inthe region that allows them to produce moresustainably and be more environmentallyconscious.

The project provides capacity building inmanagement of the coffee plantations inagroforestry with agroecological productionpractices, care in post-harvest processing, grainbeneficiation and marketing support. The dryingand roasting processes were also improvedthroughout the project to further enhance thequality of the final product. According toIDESAM, the techniques introduced enabledfarmers to significantly reduce the loss of grainsdue to pests in the coffee plantations from 30%to 1.8%. Through initial investments, the producers sawa significant increase in their production andincome. Average productivity has more thandoubled from 8 to 17 bags of coffee per hectare,without clearing new forest areas. The quality ofthe coffee produced has also improved enoughto differentiate their product as a higher valuecoffee in the market. The Apuí AgroforestryCoffee is the first certified organic coffeeproduced by small farmers in the BrazilianAmazon. The project has positively impactedover 50 families throughout the coffeeproduction chain. The coffee farmers’ annualincome has increased by 220%. The followingstep of the project is to secure the purity andmaintain the organic certification seal of thefinal product, which increases the market valueand brings additional financial benefits tothe Apuí coffee producers.

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PHOTO BY IDESAM

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The intercropping of coffee plants withnative forest species in a system ofagroforestry or “productive forest”introduced by IDESAM in Apuí providesshading for the coffee plantations, whichreduces exposure from the region’sintense sunshine and changes the localmicroclimate. These conditions help toretain moisture and to gradually build thefertility of the soil which also help toenrich the quality of the coffee. A simplePET bottle with detergent and alcohol isused for pest control, replacing previouslyused chemical pesticides. These factorscreate the right conditions to improve theproductivity and quality of the organiccoffee, while reducing the impact onhuman health and the environment dueto its organic production system, whichdoesn’t use any chemicals inputs, forexample, for pest controls.Plantations thatwere previously planted with coffeemonoculture are combined withindigenous trees such as ipê, andiroba,jatobá, among others, and are graduallytransforming the landscape of themunicipality. The Apuí Agroforestryproject has contributed to thereforestation of 33 hectares of land in theAmazonas State.

Environmental Impacts

Product MarketingThe Apuí Agroforestry Coffee product,launched in May 2015, is the first 100%robusta coffee (Coffea canephora)produced sustainably in the Amazonasstate and the second in Brazil. Theecological production method andimproved drying and roasting processeshave enhanced the flavor and aroma of thecoffee drink and have opened up thepossibility for the Apuí coffee to obtainaccredited certifications. Within just threeyears since its launch, the product hasalready reached markets in Manaus, PortoVelho, Rio de Janeiro, Brasília and SãoPaulo.

The coffee mainly targets conscious consumerswho care about source, traceability andproduction ethics. The project has secured an organic certificationseal for the final product, which increased itsmarket value and brought financial benefits to theApuí coffee producers. According to Marina Reiafrom IDESAM, the main objective of the project isto provide a better and alternative source ofincome for farmers in the region, which allowsthem to be more conscious and sustainable.

PHOTO BY IDESAM

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in an effort to mitigate climate change andadvance the sustainable development ofcommunities living in the Amazon forest.IDESAM actively participates in nationalnetworks and working groups in order toinfluence the formulation of policies andprograms focused on climate change andforests that are socially inclusive, economicallyviable and environmentally sustainable.

Enabling Conditionsand Challenges The Apuí Agroforestry project began in 2012,with financial support from the Vale Fund(Fundo Vale). Additionally, the initiative has alsobeen supported by the Climate and SocietyInstitute (Instituto Clima e Sociedade - iCS),which will extend until the end of 2019 andgenerate important results for the municipality’scoffee value chain. The main enablingconditions that were instrumental to thesuccess of the project were financial supportand effective coordination at the local level.IDESAM and its partners have goodunderstanding of local dynamics, due topresence of the local team on the groundcommunicating directly to producers. Brazil hassome good regulations through the NationalForest Code and efficient deforestation trackingby INPE, however, the main challenge is a lackof law enforcement.

IDESAM actively participates in dialogues andformulation of public policies at various levels.At the state level, IDESAM played a crucial rolein the formulation of the State Policy onClimate Change and the Amazonian Forumon Climate Change. It supported the approvalof the regulation of Amazonas State Law onClimate Change in 2009, which was the firstAmazon state to have a regulation for climatechange with targets to reduce emissions anddeforestation. IDESAM also initiated aprogram in Rondônia to create an indigenousfund to manage financing from selling carboncredits and to monitor the implementation offunds used to create a local economy thatgenerates income without forest loss. Inaddition, IDESAM supported the developmentof the first indigenous REDD+ (reducedemissions from deforestation and forestdegradation) projects in the world to achieveinternational certifications and sell carboncredits in the international carbon markets:the Surui Forest Carbon Project, in RondôniaState.  This project enabled the Surui peopleto raise and manage additional investments,from the REDD+ results, for sustainableproduction systems and monitoring of theindigenous territory.

Policy Impacts

PHOTO BY IDESAM

In the national setting, IDESAM initiates anddevelops projects linked to REDD+ andpayments for environmental services (PES),

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Long-term Vision andNext Steps

According to recent studies, most of thedeforestation that occurs, most of thedeforestation that occurs in the BrazilianAmazon is illegal. Illegal logging, farming andmining has increased recently since the newgovernment has made changes in theenvironmental ministry which have significantlyweakened its capacities and the country’s lawenforcement efforts. More positive regulationsfrom the federal and subnational governmentthat provide economic support to initiatives thatadd value to local products from the Amazon areneeded to further strengthen the ApuíAgroforestry initiative. Additionally, IDESAM is theonly organization in Apuí working on coffeeagroforestry. A wider network of partnerssupporting this activity would help strengthenthe impact.

IDESAM is currently working closely with the9 jurisdictions in the Brazilian Amazon andrecognizes the power and strength they haveto promote change on the ground withindigenous peoples and NGOs. The IDESAMteam has learned from experience thattechnical and political exchanges at the localand subnational level can add a lot ofknowledge. Sharing impacts and lessonsfrom initiatives like the Apuí AgroforestryCoffee project is important to createawareness that there are alternative forms ofeconomic development to deforestation inthe Amazon and other tropical forests.

The Apuí Agroforestry Coffee project intendsto further expand the recovered areas andbenefit an additional 200 producers in thenext three years. Recently, IDESAM hascreated the Apuí Agroforestry CoffeeCompany (AACC), a start-up that aims toscale-up this initiative and market the Apuíorganic coffee in urban centers aroundBrazil.

IDESAM has been actively participating in localevents that promote the sustainable businessecosystem in Brazil to exchange experiences anddiscuss the challenges of the Amazon region’sbusiness community, with producer associations,cooperatives and partners from other states.IDESAM has also been sharing concepts, resultsobtained and lessons learned from its initiativesby facilitating training and lectures to specificaudiences and to civil society to discuss theissues of collaborative commerce among localproducers and consumers.

PHOTO BY IDESAM

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The AACC will soon open its first round of investments, through an “equity-crowdfunding”platform. IDESAM and the AACC will be able to test and operate the sustainable coffee supplychain in Apuí under a “blended finance” system which will bring grants and investmentstogether to scale up the initiative, increasing the positive impacts for the Apuí farmers, theforests and the climate. The way forward for IDESAM to further develop its pilot initiatives is to attract the private sectorto invest in initiatives like the Apuí Agroforestry project that have proven their potential forpositive financial returns as well as environmental and socioeconomic impact for localcommunities. In the next phase of the project, IDESAM will work on connecting with potentialinvestors to finance the project and provide more market access to the producers. The overallgoal is to develop and promote models of real change on the ground for the private sector andsubnational governments to join and support.

Key Project Partners IDESAMRole: Manages Overall coordination of the project, including technical assistance, quality assurance,coordination of organic certification and marketing strategy. Technical PartnersAPFOV (Associacao dos Produtores Familiares Ouro Verde)Role: Production, Participative Certification, Quality Assurance and Organic Processing Café ApuíRole: Local Partner for Reception, Processing and Packaging of the coffee Commercial PartnersSoutheast Brazil: ATA, Taberna da Amazonia, Instituto Chao, QuitandocaAmazonas: Patio Gourmet, Bombons Finos, Emporio Di Grano, Casa De Sarana, CapatiraOther Partners: Santa Luzia, Imaflora, Associaco Ouro Verde, CATIE, Via Verde, INPA See a full list of general partners and funders of IDESAM here: https://idesam.org/en/o-idesam/

Additional ResourcesNews: Apuí Agroforestry Coffee Arrives At Extractivists Communities Of Unini River

Blog Post: Coffee from 100% Amazon terroir revives the forest and involves communities in agroforestrycultivation

Contact Information: pedro.soares@idesam.org.br

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NYDFglobalplatform.org | nydf@undp.org

The New York Declaration on Forests (NYDF) was launched in 2014 and outlines ten ambitious global goals to protectand restore forests and end natural forest loss by 2030. The Global Platform for the NYDF (NYDF Platform), launched in2017, seeks to increase ambition, forge new partnerships and accelerate progress on the NYDF goals by providing adedicated, multi-stakeholder platform to re-invigorate political endorsement of the NYDF, facilitate coordination andcommunication, share best practices, resources and lessons, and support ongoing monitoring of progress. The NYDFPlatform is coordinated by the United Nations Development Programme, Meridian Institute, and Climate Advisers.nydf@undp.org | nydfglobalplatform.org

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AcknowledgementsAuthor: Tiginesh Beyene, UNDPContributors: Pedro Soares, IDESAM; Madeline Craig, UNDP