phase ii peru cacao alliance phase ii - usaid
TRANSCRIPT
PHASE II QUARTERLY PROGRESS REPORT: APRIL - JUNE 2017 (YEAR 1, QUARTER 3)
COOPERATIVE AGREEMENT NO: AID-527-A-16-00002
PERU CACAO ALLIANCE
PHASE II WORKPLAN YEAR 2: SEPTEMBER 2017 - AUGUST 2018
COOPERATIVE AGREEMENT NO: AID-527-A-16-00002
DISCLAIMER
The opinions expressed in this publication do not necessarily reflect the views of the U.S. Agency for
International Development (USAID), or those of the U.S. Government.
Photo Caption:
Carlos Sierra, the first technology agent of the Peru Cacao Alliance. Tocache, San Martin. May
2017.
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Table of Contents
EXECUTIVE SUMMARY ....................................................................................................................... 4
RESULT 1: FACILITATE MARKET ACCESS ....................................................................................... 5
RESULT 2: INCREASE CACAO FARMER PRODUCIVITY AND QUALITY OF POST-HARVEST
PRODUCTS ......................................................................................................................................... 14
RESULT 3: INCREASE ACCESS TO FINANCE ................................................................................ 21
RESULT 4: FACILITATING PRIVATE INVESTMENT ........................................................................ 26
COMMUNICATIONS ........................................................................................................................... 31
GENDER .............................................................................................................................................. 35
MONITORING AND EVALUATION ..................................................................................................... 37
LEVERAGE .......................................................................................................................................... 40
ENVIRONMENTAL COMPLIANCE ..................................................................................................... 41
ADMINISTRATION AND FINANCE ..................................................................................................... 44
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EXECUTIVE SUMMARY
Between September 2017 and August 2018, the Peru Cacao Alliance (PCA) will consolidate its value
proposition for small farmers to achieve improved productivity, access to differentiated markets,
increased access to finance, and increased private investment, building on the momentum developed
over the last four years.
In its second year, PCA will promote cacao quality improvement through expanding assistance in its
“Schools of Excellence to Improve Cacao Quality”, and by providing technical assistance to 20 supply
chain managers so these can obtain the desired flavor profiles they seek. We will also teach PCA
cacao processors how to conduct sensory evaluation of cacao liquor, we will support delivery of cacao
liquor samples to international chocolatiers, and we will promote the unique flavor profiles obtained by
Peru’s processors at the principal cacao trade shows.
We intend to reach 20,000 farmers with extension services in the three geographic zones by applying
strategies such as group training, field days, and individual visits. PCA will complement this extension
by continuing to train technology agents who also serve as “lead farmers”, and who will demonstrate
good agricultural practices promoted by PCA on 400 model plots. The first class of technology agents
will graduate during the 2nd quarter in Year two, and they will begin (or in some cases, continue) to
train neighboring farmers together with PCA-supported field technicians and Alliance partners.
This year PCA will also support farmers to access finance in sufficient quantities so they can purchase
and apply appropriate technology on their agroforestry plots. PCA’s financial sector partners will take
part in designing and implementing a training on production methods and a complementary financial
literacy training that will reach 2,000 farmers in Year two.
Our investment promotion work will intensify this year, as we share investment opportunity “teasers”,
hire private investment facilitators on a performance basis, and facilitate interactions between partner
financial institutions, seekers of finance and project promoters, to expand new, principally private
investments in the zones of influence.
As has been the case in year one, our Alliance partners will actively participate in each of the above
components and activities. The strength of the Alliance is in the collaborative business model we
promote, where all members are convinced of PCA’s value proposition given that it is not only good
for business, but good for farmers. Along these lines, PCA will organize a second, formal meeting of
its private sector Alliance partners in December 2017. The goals of this meeting are to reflect on
PCA’s joint accomplishments within year one, and to share the collaborative implementation strategies
for year two.
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RESULT 1: FACILITATE MARKET
ACCESS
Francesca Valdivia, owner and founder of Q’uma Chocolates, together with a group of partner farmers from the Peru Cacao
Alliance in San Rafael, Mariscal Cáceres. Francesca constantly travels to Peruvian Amazon to look for new flavor profiles for
her line of fine chocolates. San Martin, May 2017.
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A.1.1 Facilitate purchase agreements between end users and supply
chain managers (SCM).
In year two, PCA will continue to facilitate commercial relationships between national and international
cacao buyers and the actors/supply chain managers that sell quality cacao. Our target this year is to
facilitate nine, new relationships between buyers and sellers of cacao.
The strategies we will use to achieve this target include:
- Design an assistance program for supply chain managers to participate in specialized trade
fairs to expand their reach into new markets.
- Develop guided tours, internships, business seminars, and support the preparation and
delivery of cacao samples to new markets/buyers.
TABLE N° 1. YEAR 2 SIGNED AGREEMENTS/REGION
Region N° of Purchase Agreements/Quarter Total
Q1 Q2 Q3 Q4
San Martín
1 1 1 3
Huánuco 1 1 1 3
Ucayali 0 1 1 1 3
SOURCE: AGRO-BUSINESS MANAGEMENT, AUTHORS.
A.1.2 Consolidate and professionalize farmer organizations by
providing tools to improve their processes and member services,
including a gender focus
PCA will strengthen six cooperatives and/or associations (two per region) by providing technical
assistance to these on topics of organizational and business management. We will also support
organizations and associations develop complementary business plans focusing on:
• Access to markets
• Improved productivity
• Access to finance
PCA will also provide organizations/associations with training on the following subjects:
• Associations
• Gender equality
• Access to finance
• Management and administration
• Harvest and post-harvest techniques
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PCA team members will support organizational strengthening activities such as workshops,
personalized consultancies and more formal technical assistance programs throughout the year. PCA
will also review and consider the findings of the commercial bloc analysis conducted for the Economic
Development Alliance (EDA) Program implemented by Technoserve within its organizational
strengthening activities and will adjust ours as required. PCA’s consultant in association strengthening
will lead the above activities.
Institutionally strengthen six cooperatives (2 per region).
PCA’s association strengthening consultant is responsible for executing the project’s cooperative and
association strengthening plans, including:
• Reforming (as needed) internal documents, including statutes or regulations to improve
partner relations or management.
• Providing training to cooperative/organizational leadership on topics related to cooperative
management and leadership to retain membership.
• Expanding membership.
• Developing management tools and processes to facilitate efficient cooperative/association
management.
Monitor and evaluate the program to strengthen six cooperatives and/or associations in
three regions.
In order to ensure that organizational strengthening activities are implemented according to plan, the
association strengthening consultant will conduct quarterly follow-up visits with the cooperative
business managers to ensure that planned activities are executed on the established dates and to
establish whether the activities fulfill expected goals. Modifications will be made to plans as required.
Develop an association strengthening plan with Oro Verde and ACOPAGRO.
Oro Verde and ACOPAGRO have developed into successful cooperatives in San Martín, however,
both need to increase their membership base to be able to collect sufficient cacao that meets the
quality standards of their buyers. Both are highly selective about who they allow to be new members
of their cooperatives, so expansion plans must be conducted carefully to avoid problems with the
broader membership. To support these cooperatives carefully but aggressively grow their
membership base, the association strengthening consultant will provide technical assistance to
cooperative leadership and will propose workshops on the following subjects:
• Cooperative management.
• Increasing membership loyalty.
• Motivating cooperative members to take part in the cooperative’s cultural activities.
• Developing a leadership plan for the cooperative’s younger members and implementation
plan.
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A.1.3 Support supply chain managers (SCM) to establish relationships
with independent farming households.
In year two, PCA will link 5,000 cacao farmers with at least five supply chain managers in the three
target zones. We will also facilitate a commercial relationship between 500 banana farmers and at
least two supply chain managers in Ucayali and Huánuco.
We will facilitate these commercial relationships through two principal actions:
- Identifying independent farmer families within the PCA database, and matching the
information with the areas of influence of each supply chain manager.
- Facilitating interaction between supply chain managers and independent farmer families
through field days, group training, and other field outreach activities involving farmers.
TABLE N° 2. YEAR 2 TARGETS FOR CONNECTING FARMERS TO SCMS
Region N° of farmers associated/ quarter Total
Q1 Q2 Q3 Q4
San Martín
300 300 500 600 1,700
Huánuco 300 300 500 700 1,800
Ucayali 300 300 600 800 2,000
SOURCE: AGRO-BUSINESS MANAGEMENT, AUTHORS.
A.1.4 Develop guidelines and an action plan for managing levels of
cadmium in cacao
In year two, PCA will continue to coordinate with APPCACAO and many other institutions to develop
a multi-pronged, collaborative action plan to address European cadmium legislation.
To address the trade implications that the issue of cadmium presents, PCA will continue to provide
technical assistance to APPCACAO, which in coordination with the Ministry of Commerce and
Tourism, will present Peru’s case to the World Health Organization (WHO). In this case, they will
present that as per the Food Codex, the levels of cadmium present in Peru’s chocolate are lower
than the minimum requirements included in European import regulations.
This year, PCA will also work with the Universidad Agraria La Molina (UNALM), to map or locate
plots with cadmium content in the project’s micro corridors. Currently, soil, bean, and foliage
samples from 240 working cacao plots (80 per regional branch) are being analyzed in the
University’s soil laboratories. These are subjected to atomic spectrometry and the results are
interpreted by three professors at the same University. We hope that these and subsequent
analyses will help us determine the sources of cadmium contamination in cacao beans.
Once the plots with presence of cadmium in their soil and on leaves are identified and mapped, the
technical team will:
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1) Determine the cadmium ratio in the soil and the cacao plant, as well as in the leafy section of the pods in different production systems.
2) Conduct a cadmium content analysis on the cacao pods, testa and cotyledon of cacao grown in soils with specific levels of cadmium content, as well as on cacao liquor and chocolates made with cacao from PCA’s intervention zones.
3) Establish the production phase most sensitive to cadmium contamination (anthropic origin), as well as the practices that can solubilize the element (geological origin).
4) Determine remediation alternatives based on the potential origins of cadmium contamination.
5) Undertake nutritional balance tests for minerals that can form the basis of a nutritional mitigation plan.
6) Test the reduction of cadmium concentrations in the testa and cotyledon of cacao beans as a result of the fermentation and drying process, and evaluate whether adding liquid carbon and/or other types of remediation are successful in reducing cadmium content.
As part of assessing possible bioremediation and phytoremediation measures, TABSAC (one of
PCA’s technology partners) will continue measuring cadmium absorption efficiency (Cd+2) of a
symbiotic association of arbuscular mycorrhizae fungi, and the root area of plant species such as
Amaranthus sp. and Brachiaria sp. We will carry out field tests by December 2017 to understand
which measures are most effective in detecting and reducing cadmium content in cacao, as well as
which measures are most cost effective to apply at scale.
As part of the nutritional balance tests, PCA will also consider the benefits of liquid carbon. In theory,
the heavy metal cadmium (Cd) is present as Cd+2 in most soils, as it has an ionic radius similar to
Calcium (Ca+2) and substitutes it easily. PCA partner Yara will continue to carry out tests in the
Tingo María area in soil that contains 7ppm, providing growing levels of Nitrabor (0, 100, 200 and
300 kg of Nitrabor/ Ha). Nitrabor contains 15.5%N- 26%, CaO-0.3%, so tests will be carried out to
determine whether its application reduces the levels of cadmium concentration in the cacao beans.
This same test will also be carried out in Juanjui, whereas in Tocache, Yara will test the effect of
different levels of organic matter, calcium and zinc.
PCA is also considering using a product produced by the Avibol SAC Company called Monty’s Plant
Food (MPF). MPF is a polyfunctional biopolymer, which immobilizes the heavy metals that
contaminate the soil, and would make these unavailable for the cacao plant’s root system. PCA has
agreed with Avibol to carry out tests of MPF usage in the three target regions to determine whether
its application could become a viable production practice.
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A.1.5 Support supply chain managers (SCM) and end buyers in the
development and promotion of differentiated products.
During year one, PCA became the principal promoter of quality cacao in the three intervention zones
by developing a comprehensive training program on post-harvest processes, and providing
extension services to farmer organizations.
This year, PCA will provide technical assistance to 20 supply chain managers so that these can
promote further investment in post-harvest management systems for cacao. The principal
intervention strategies will include:
- Improving centralized, post-harvest training modules.
- Providing equipment to apply methods within post-harvest training modules.
- Training SCM staff/members in implementing methods included in the post-harvest
modules.
- Preparing differentiated cacao product samples and cacao plots.
TABLE N° 3. YEAR 2 SCM SUPPORT TARGETS
Region N° of Supply chain managers supported by PCA
Total
Q1 Q2 Q3 Q4
San Martín 3 3 2 8
Huánuco 3 3 1 7
Ucayali 3 1 1 5
SOURCE: AGRO-BUSINESS MANAGEMENT, AUTHORS.
PCA will also open and manage five new “Schools of Excellence to Improve Cacao Quality” with the
support and co-financing of PROMPERU, CITE, and local and regional governments.
A.1.6 Create supply agreements with end buyers of chocolate and
other buyers of products from the Amazon.
In year two, we will strengthen our work with international chocolate companies buying cacao from
Peru, such as the Italian firm ICAM SPA. PCA’s target for this activity this year is to facilitate three
new, significant and enduring purchase agreements between SCMs and chocolate company buyers
(1 per region).
To facilitate these commercial relationships, we will undertake the following activities:
- Participate in international trade shows and fairs. At the national level, PCA will participate in
the 2018 Salon of Cacao and Chocolate, with the goal of converting this show into the
principal trade show for cacao and chocolate companies in Peru. We will support organization
of business roundtables at the 2018 Salon to further facilitate negotiation and closure of
business deals between international and domestic actors. At this and at every trade show,
we will track the number of purchase agreements begun or completed, and create profiles on
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all potential buyers. Internationally, PCA will participate directly or through our Alliance
partners in the most prominent and relevant trade shows where potential buyers are present,
such as: The Big Chocolate Show in New York, the Salon Du Chocolat in Paris, The
Chocolate Show in London, BioFach in Nuremberg, Chocoa in Amsterdam, and the Fancy
Foods Show in New York. PCA will hire a new team member to assist in organizing trade
show participation and field visits to Peru to ensure maximum effectiveness.
- Facilitate guided tours to the Alliance’s zones of influence. PCA will coordinate a program of
field visits for the chocolatiers participating in the Salon of Cacao and Chocolate 2018. We
will coordinate these visits with the export promotion agency PROMPERU and will tailor and
market guided visits to previous participants of the Salon of Cacao and Chocolate, especially
those which successfully negotiated commercial deals with suppliers at this event. We will
also facilitate visits for existing and new chocolatier buyers in target regions in an effort to
deepen market linkages and facilitate new purchase agreements as well as new investments.
PCA’s Monitoring and Evaluation team will track the number and nature of visits facilitated as
well as commercial successes emanating from these visits.
- PCA will also provide technical assistance to SCMs via a new team member who can support
the Schools of Excellence in preparing and delivering cacao samples to buyers, and to provide
technical assistance to firms participating in trade shows and to chocolate companies visiting
Peru, so these activities are conducted as effectively and efficiently as possible.
In addition, PCA will also facilitate two purchase agreements in the banana value chain (one in
Huánuco and one in Ucayali). The two banana VC purchase agreements plus the three chocolate
company purchase agreements adds up to five for Year two, per Table 4 below.
TABLE N° 4. YEAR 2 PURCHASE AGREEMENT TARGETS WITH CHOCOLATE COMPANIES
Region N° of direct purchase agreements successfully negotiated
Total
Q1 Q2 Q3 Q4
San Martín 1
1
Huánuco 1 1
2
Ucayali 1 1
2
SOURCE: AGRO-BUSINESS MANAGEMENT, AUTHORS.
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TABLE N° 5. ACTIVITIES CALENDAR
GOALS/ACTIVITIES HIERARCHY INDICATORS TARGET EXECUTION PERIOD
Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May. Jun. Jul. Aug.
A.1.1 Facilitate relationships between commercial buyers and supply chain managers (SCM)
Number of agreements signed between SCMs commercial partners
9 agreements signed
a Structure program by which supply chain managers attend trade shows to expand market linkages
b Facilitate guided tours to Peru 9
c Internships 3
d Prepare and deliver samples to buyers
9
A.1.2
Consolidate and professionalize agricultural organizations by providing them with tools to improve membership and gender inclusion
Number of organizations supported
10 organizations
a Strengthen association membership and commercial relationships
6
b Monitor and evaluate for association memberships and commercial activities
3
c Strengthen associations with Oro Verde and ACOPAGRO cooperatives
2
A.1.3 Support the SCM to develop relationships with independent farmers
Number of families involved in supply agreements
5,500 families included in supply agreements
a
Identify independent farming families in the PCA database, crossing this information with SCM activities/actions.
Information from 10 independent farming families
crossed with SCM
b Conduct field days 10
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c Conduct group trainings 10
d Conduct additional field outreach activities
5
A.1.4 Produce guidelines and an action plan to manage the presence of cadmium in the cacao VC
Number of practical improvements incorporated in the Alliance’s technical package
2 practical improvements incorporated
a APPCACAO proposal 1
b Conduct study by Universidad Agraria La Molina
1
A.1.5 Support SCMs and final buyers to develop and promote differentiated products
Number of supply chain managers that invest in post-harvest management
6 supply chain managers
a Improve centralized modules 10
b Provide equipment for centralized modules
10
c Conduct raining 20
d Open new Schools of Excellence to Improve Cacao Quality
5
A.1.6. Sign purchase agreements with chocolate and other buyers of Amazon buyers
Number of direct purchase agreements signed
5 agreements
a Participate in trade shows 7
b Facilitate guided tours to Peru 5
c Internships 3
d Prepare and deliver cacao product samples to buyers
9
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RESULT 2: INCREASE CACAO FARMER
PRODUCIVITY AND QUALITY OF
POST-HARVEST PRODUCTS
A mix of varieties of fine flavor cacao. Photo from Tingo María, 2017.
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A.2.1 Develop new technology packages and implement a
methodology of mass adoption among small producers for
Agroforestry System Products (ASP)
2.1.1 Implement and develop Schools of Excellence in Productivity.
We will continue to disseminate technologies previously developed and used to support fertilization
and pest management, both of which are crucial to increasing cacao yields (kg/ha). As per the table
below, we will support 20,000 farmers to adopt these technologies on 48,000 hectares.
TABLE N° 6. NUMBER OF FARMERS SERVED BY FIELD TECHNICAL PERSONNEL FOR YEAR TWO
Regional Office
No. farmers
No. Has No. Managers
No. “Elite Technicians”
No. Technical
Facilitators (PCA)
No. Technicians
(SCM)
Huánuco 6,250 15,000 2 4 20 20
Ucayali 6,250 15,000 2 4 20 10
San Martin 7,500 18,000 2 4 22 20
Total 20,000 48,000 6 12 62 50
As part of the technology adoption methodology, 12 elite technicians from the three, regional PCA offices will be trained in topics related to improved productivity. Once these technicians are trained, they will be in charge of replicating their training to other technicians.
Each regional branch office will have between 20-22 field technicians training 15,000 farmers in new technology adoption. To do so, they will implement group trainings, “field days”, and technical visits with individual farmers. Each field technician will be responsible for training between four and six groups of 20 farmers each during the eight-month agricultural campaign, allowing them to reach 8,220 farmers.
Each field technician will conduct four field days during each harvest. Each field day will include a minimum of 20 participants, reaching 80 farmers. The field technicians will also carry out five individual farmer visits per month, reaching 60 farmers.
TABLE N° 7: NUMBER OF FARMERS PARTICIPATING IN TRAINING REPLICATION SESSIONS IN YEAR 2
Training replication
Regional Office Total
San Martin Huánuco Ucayali
Total Men Women Total Men Women Total Men Women
Through Peru Cacao Alliance (PCA) Field Technicians
Group
training
2,200
1,540
660
2,200
1,540
660
2,200
1,540
660
6,600
Field days
1,600
1,120
480
1,600
1,120
480
1,600
1,120
480
4,800
Individual
farmer visits
1,200
840
360
1,200
840
360
1,200
840
360
3,600
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Sub Total
5,000
3,500
1,500
5,000
3,500
1,500
5,000
3,500
1,500
15,000
Through Supply Chain Manager (SCM) technicians
Different
methodologi
es
1,500
1,050
450
750
525
225
625
438
187
2,875
Sub Total
1,500
1,050
450
750
525
225
625
438
187
2,875
Through Technology Agents
Different
methodologi
es
1,000
700
300
500
350
150
625
438
187
2,125
Sub Total 1,000 700 300 500 350 150 625 438 187 2,125
Total 7,500 5,250 2,250 6,250 4,375 1,875 6,250 4,376 1,874 20,000
Approximately 50 technical personnel of PCA partner SCMs will be trained to replicate trainings among 2,875 farmers in their target geographic areas. As other partners such as ACOPAGRO, Oro Verde and Allima Cacao have trained suppliers and partners in productivity and quality.
In each micro-corridor we have identified lead farmers to serve as technology agents and to replicate training in their respective geographic areas upon completion of a rigorous training process. Currently 16 Schools of Excellence (SE) have been implemented for this purpose: 6 in Ucayali, 4 in Huánuco, and 6 in San Martín. 300 men and 80 women have already completed four of the eight sessions and are due to finish in January 2018. The highest qualified participants (approximately 30%) will receive additional training on agricultural extension, personnel development and leadership. We expect that technology agents will carry out replica trainings among 2,125 farmers. We expect to have 45 operational technology agents by the beginning of 2018.
The main technological partners (YARA, San Fernando, Husqvarna, TABSAC and Naandanjain) will provide briefings to complement training replication sessions with farmers. Each partner will present the benefits of use of their products at these training replication sessions. Agrobanco and other financial partners will also participate in these farmer training sessions with briefings on how to access credit to conduct crop fertilization and maintenance. PCA technology partners will complement these briefings with demonstration plots, as well as their own extension services.
We expect to reach the maximum number of families served with extension services by July 2018.
2.1.2 Develop a Banana Technology Package.
PCA and our partners have already developed a proposal for a banana technology package that requires field testing and validation. This year we will begin this field testing and validation with our key banana SCM, Procesadora Tropical SAC.
2.1.3. Develop Technology Packages for Forest Species.
PCA hired a consultant to develop a technology package that will improve planting efficiency of the
fast growing tree species Bolaina and Capirona. The technology package will be developed in
conjunction with the key SCM for forest species, RAMSA. To support this, we will conduct the
following activities in Year two:
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• Gather information on forest species.
• Perform an assessment of existing management of these forest species. Select farmers
already working with RAMSA.
• Design the technology package and adapt it to the cultural reality in the field.
A.2.2 Develop a strategy to broaden the distribution network of our
partner technology providers’ agricultural inputs, fertilizers, post-
sales technical equipment, and services.
PCA’s technology partners plan to develop their own network of distributors to broaden their number of clients in the short term. PCA support technology partners accomplish this through support of our field technicians, and through identifying technology agents who can work as distributors.
PCA, via our Schools of Excellence (SoE), will expand distribution of inputs, fertilizers, equipment and technical services in collaboration with our technology partners, which at this moment include YARA, Husqvarna, San Fernando, Naandanjain, TABSAC and others. PCA field technicians, partner technical personnel and product distributors of technology partners will actively participate in the SoE trainings. Once trained, technology agents can serve as distributors of technology partners.
In addition to their participation in the SoE, technology partners will provide on-site demonstrations of the technology that PCA is promoting. Technology partners will put in place a set of “Demonstration Plots”, where farmers will be able to experiment with different products. These plots serve to allow private partners another channel to disseminate their technology more widely, and for farmers to see first-hand exactly how the products work. Each product’s use will be assessed by a technical specialist to collect data to confirm yield and other performance conclusions.
A.2.3 Develop and implement an online technical support system for crop, pest, and disease management.
This year, our communications team will continue to develop and disseminate text messages (SMS) with support from technical experts to farmers, to support them in crop, pest and disease management. This SMS program was further supported by PCA’s monitoring and evaluation team last year.
Since May 2017, this online system has allowed PCA’s team to support farmers by receiving questions from farmers and responding via text message. Currently, 3,500 farmers are receiving SMS, and by the end of Year Two, we expect to reach 5,000 farmers. Last year PCA sent a total of 81,000 SMS to farmers, and will exceed this target in Year Two.
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A.2.4 Support the development of Micro, Small and Medium
Businesses (MSMEs) providing key services.
PCA recognizes that our activities inspire new entrepreneurs each year to start and expand their
businesses in support of the cacao and broader agroforestry value chains. In Year two we will
continue to identify MSMEs operational within the micro-corridors where we work, and that are
providing technical assistance and other services to support improved cacao production and
expanded cacao and agroforestry product cultivation. Knowing who these MSMEs are will allow
PCA’s field staff to promote their products or services among PCA-supported farmers.
A.2.5 Develop agricultural extension services in conjunction with
Supply Chain Managers (SCM).
Involvement of the SCMs ensures the sustainability of agricultural extension services. This year,
PCM will continue to implement “model plots”, production sites that will be used to demonstrate “best
practices” in technology application. Currently over 200 of these such plots have been identified,
each measuring one hectare on average. These plots will be “ground zero” for the technology
packages promoted by the Alliance, and will be sponsored by partner SCMs. Productivity
improvements on the model plots become a means to achieve behavior change among the
thousands of farmers within a kilometer radius of influence. By the end of year two we expect to
have 400 operational model plots.
PCA will also continue to assist SCMs with technical assistance and proposal writing support so
these can access the funding necessary to expand their extension services to farmers in their
geographic target areas. This year, PCA plans to support SCMs apply for funds from Peru’s state
programs called INNOVATE, Fyncit, and FONDOEMPLEO.
PCA in future reports will provide updates as to the success of these proposals.
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TABLE N° 8: CALENDAR OF ACTIVITIES
Activities 2017 2018
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
A.2.1. Develop and implement new technology packages in the agroforestry system for the participating farmers
a. Implement the "Schools of Excellence in Quality Productivity".
a.1. Train elite technicians
a.2. Train facilitators (PCA), technical personnel (via supply chain managers) and technology agents.
a.3. Conduct training replicas
b. Develop technology package for banana
b.1 Apply technical package for banana planting.
b.2. Validate banana technology package
b.3. Collect data and information to support systematization
c. Develop forest species technology package
c.1 Create the technology package to plant fast-growing species
c.2. Oversee Bolaina and Capirona planting using the technology package
c.2. Validate the technological package for forest species
c.3. Collect data and information to support systematization
A.2.2. Develop a strategy to broaden the distribution network of our partner technology providers’ agricultural inputs, fertilizers, post-sales technical equipment, and services.
a. Conduct capacity building of technology partners and, in turn, the farmers by PCA technical field staff.
b. Conduct capacity building of the technology partners and, in turn, the farmers.
c. Support the implementation of demonstration plots.
A.2.3. Develop and implement an online, farmer technical support system for crop management, integrated pest management and other issues
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a. Elaborate SMS responses that are automatic and in response to text message questions from farmers.
b. Conduct training to field technicians, including (PCA) facilitators, technical personnel (SCM), and technology agents to provide automatic SMS responses to PCA farmers.
c. Support communication and extension between field technical staff and PCA farmers via text messages (SMS).
A.2.4. Support the development of micro, small and medium companies (MSMEs) that provide key services in the micro-corridors
a. Identify agroforestry-supporting MSMES in the micro corridors
b. Support MSMEs to promote and develop their products and services
A.2.5. Develop agricultural extension services in conjunction with Supply Chain Managers (SCM).
a. Support implementation and development of "Model Plots"
a.1. Identify and select "Model Plots"
a.2. Coordinate with the SCMs to implement "Model Plots"
a.3. Apply technology on the "Model Plots"
a.4 Diffuse outcomes of "Model Plots" with the broader producer population
b. Support proposal writing for SCMs
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RESULT 3: INCREASE ACCESS
TO FINANCE
PCA-supported farmer in the Aucayacu area, Tingo María. July, 2017.
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A.3.1 Promote access to finance among Alliance farmers
PCA has been promoting technology improvement to support expanded yields in cacao and banana
value chains, as well as for forest species. It is important for farmers to access adequate financing
so they can purchase the tools and equipment to make these agricultural investments and reap yield
improvements. PCA will undertake the following activities towards this end:
• Continue signing agreements between PCA and financial institutions (FIs).
• Design financial products that will facilitate improved yields.
• Conduct FI officer training in how to conduct on-farm assessments.
• Develop manuals that will support improved agribusiness assessment.
In Year two, PCA will assist at least 1,000 families to access new financing from Alliance partner FIs.
A.3.2 Support partner farmer organizations and companies to access
needed financing
Ensuring adequate supply of high quality cacao is the principal problem of farmer organizations, and
one of their biggest impediments in doing so is limited access to capital for cacao purchase and
stockpiling. PCA will support six farmer organizations to enter into arrangements with FIs so they can
implement a stockpile plan for the 2018 cacao harvest. Specifically, PCA will help farmer organizations
to:
• Develop a financing business plan to comply with the purchase commitments made for
the 2018 cacao harvest.
• Prepare the necessary information to present financing requests to FIs.
• Hold meetings with FIs to share the range of high quality financing opportunities of PCA
Alliance members.
PCA will hire a set of business advisors during the last quarter of calendar year 2017 on pay-for-
performance contracts to support the above activities.
A.3.3 Develop a financial literacy program
According to data obtained in PCA’s baseline survey, 90% of farmers who requested credit received
it. But only 10% of all farmers surveyed even requested financing. One of the most important
reasons for this gap is the farmers’ fear and lack of knowledge regarding how the financial system
operates. For this reason, the Alliance, in coordination with its FI partners, will develop a financial
literacy program (FL) as part of the “Schools of Excellence in Cacao Productivity”. Towards this end,
we will undertake the following activities:
• Hold meetings with partner FIs to analyze existing financial literacy programs.
23
• Develop jointly developed curriculum that allows FI trainers to unify their messages to
farmers.
• Train PCA-supported credit promoters, business managers and elite technicians in the
financial literacy program.
• Train FI credit analysts in the financial literacy program.
• Hold financial literacy trainings for farmers as part of the Schools of Excellence promoted
by the PCA.
This year we will train 2,000 farmers via the financial literacy program.
A.3.4 Expand the use of electronic wallet (e-wallet) services
In PCA’s first year, in coordination with its partner Pagos Digitales del Peru (PDP), we began to
implement the steps required to put in place an e-wallet pilot program in the San Martin region.
Juanjui was selected as the base for this pilot, which would be conducted in collaboration with the
ACOPAGRO cooperative. ACOPAGRO committed to involve at least two of its committees in
mobile money services to purchase cacao this harvest. By June 2017, and at PDP’s request, PCA
had collected information on 73 producers in three committees in the Chambira, El Porvenir y La
Victoria to determine the cash flow among producers (how they spend money and where they spend
money) to determine where new efficiencies could be found for which an e-wallet tool would add
value. The Alliance also collected information on the potential points of sale where farmers could
make and accept payments through this mobile money system.
With the data collected and a better sense of the “value chain of money” in these target areas, PDP
can enter into the necessary arrangements with potential transaction points and also financial
institutions in the target zones to operationalize their e-wallet product. Without “buy-in” from retailers
that are already accepting farmer cash and a FI partner that will convert the cash into mobile money
and back again, the project cannot move forward. Assuming that PDP finalizes these transactions
with key players, we expect to begin the pilot program before the end of 2017.
24
TABLE N° 9: CALENDAR OF ACTIVITIES
Activities
2017 2018
Set Oct Nov Dec Jan Feb
Mar
Apr
May
Jun
Jul Aug
A.3.1 Promote access to finance among Alliance farmers
a. Forge agreements with FIs
b. Design financial products that help farmers achieve improved yields
c. Train FI personnel in farmer plot assessment
d. Develop manuals for proper agribusiness assessment
3.2 Support partner farmer organizations and companies to access needed financing
a. Develop finance business plans to meet purchase agreements made for the 2018 harvest
b. Support select farmer organizations to prepare requests for financing from FIs
c. Meet with financing entities to share the existing financing opportunities among PCA-supported organizations
d. Hire business consultants on pay-for-performance contracts to facilitate farmer organization financing
3.3 Develop a financial literacy program
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a. Hold meeting with partner FIs to assess existing financial literacy programs
b. Develop joint training materials that allow FI staff to unify their messages
c. Train PCA-supported credit promoters, business managers and elite technicians in the financial literacy program
d. Train FI credit officers in the financial literacy program
e. Hold financial literacy sessions for farmers as part of the Schools of Excellence
3.4 Expand the use of e-wallet services
a. PDP enters into arrangements with FIs and transaction point partners
b. E-wallet pilot implementation begins
26
RESULT 4: FACILITATING
PRIVATE INVESTMENT
PCA partner farmers taking part in the cacao harvest in Husqvarna, Tingo María, May 2017.
27
PCA’s strategy to facilitate new investment into the three target regions is based on (1) establishing
durable supply chain relationships with large buyers; (2) establishing and managing relationships
with interested lenders and investors in Peru and outside of Peru; (3) identifying a pipeline of viable
investment opportunities in cacao and the broader agroforestry sectors, and; (4) facilitating the
closure of new investments transactions by hiring external transaction advisors on pay-for-
performance contracts.
PCA will broaden its investment facilitation capacities by hiring a set of transaction advisors that will
be closely supervised by a Lima-based staff person responsible for private investment promotion
activities of PCA and our partners. The appointed staff person will oversee the transaction advisors,
and will support these successfully carry out their activities of investment identification, structuring
and closure. PCA’s role in the relationship between a potential investee and investor is that of an
“honest broker”, involving the project management team only when necessary.
Given the expansive information requirements that private investors demand of potential investees
and investment facilitators, and the rapid pace they are used to, means that PCA needs to change
the way we work with investors to ensure success in the relationship when viable opportunities
present themselves. Investors are easily attracted to the opportunities presented within our Alliance,
but without proper relationship management and strict attention to detail, investors can quickly lose
interest in doing business with our partners. Our new staff person and by engaging the best
transaction advisors in Peru, we will ensure that these investment relationships are managed at the
highest levels of quality, and lead to commensurate results.
TABLE N° 10: INDICATORS AND ACTIVITIES FOR FACILITATING PRIVATE INVESTMENT Activities Indicator(s) Goal Responsible Party
R4 Increased private investment in productive chains promoted by PCA
A.4.1 Conclude strategy for investment promotion
# of people hired for this component
2 Director; Deputy Director; Program Director; Program Manager; Human Resources
A.4.2 Identify investment opportunities within PCA partners and target regions
# of users of the investment web portal # of commercial content pieces generated Level of satisfaction of the attendees attending the investment summit
To be confirmed
4
90%
Communications; Director; Deputy Director; Director/ Program Manager; Private Investment Manager; Investor Relations Manager; STTA
A.4.3 Forge and manage relationships with private investment fund managers and FIs
# of relationships developed
4 Director; Deputy Director; Director/ Program Manager; Investment Manager; Investor Relations Manager; STTA
A.4.4 Identify and package investment proposals
# of new investment opportunities identified and packaged
25
Director; Deputy Director; Director/ Program Manager; Private Investment Manager;
28
Average size of investment deals in the portfolio
To be confirmed
Investor Relations Manager; STTA
A.4.5 Facilitate access for SMEs / cooperatives to credit & investment
# of memorandums of understanding signed by transaction advisor consultants and PCA partners Amount of financing mobilized
15
$5M
Director; Deputy Director; Director/ Program Manager; Private Investment Manager; Investor Relations Manager; STTA
A.4.1 Conclude strategy for investment promotion
PCA will hire a full-time Private Investment Manager to be based in our Lima headquarters to
manage and amplify the platform of investment promotion and access. This staff person will be
responsible for coordinating the activities of the hired transaction advisors/companies to promote
investment, and will serve as a point of contact for potential investors seeking opportunities among
PCA and its partners.
A.4.2 Identify investment opportunities within PCA partners and target
regions
Since the existence of good investment opportunities is not sufficient to generate the interest of
investors, PCA must adopt a highly proactive approach to identify and market its potential
investment opportunities. Our approach is multi-dimensional approach, including (1) establishing a
dynamic, web-based investment portal, where potential investors and potential transaction
consultants can identify key details on investment opportunities within the Alliance network (private
investment mapping system); (2) generating basic marketing and promotion tools (i.e. press
communications/blogs/ideas) that we can use to promote investment opportunities through a variety
of our own and third-party channels; and (3) hosting an annual investment meeting that will gather
potential investors and organizations seeking to make new contacts and start new investment deals.
A.4.3 Forge and manage relationships with private investment fund
managers and FIs
Although the broader PCA team and Palladium already enjoy relationships with several private
investment fund managers and banks, we will continue to proactively seek out, establish and
cultivate additional relationships with these actors, with the hope of bringing them to Peru to meet
our Alliance partners seeking financing and investment.
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A.4.4 Identify and package investment proposals
Transaction advisor consultants will be trained by PCA staff to identify and structure appropriate
investment opportunities in the three target regions not currently included in the Alliance’s portfolio.
Our goal is for new investments to have linkages to our partner farmers producing agroforestry
products. Through the combined effort of our team of transaction consultants, Lima staff and
headquarters managers, we will generate a continuous pipeline of high quality and environmentally
sustainable investment opportunities.
A.4.5 Facilitate access for SMEs/cooperatives to credit and
investment
By hiring high-quality transaction advisors throughout Peru on performance-based contracts, we will
broaden the Alliance’s scope and further our capacities to guarantee debt and capital funding to our
partners. Providing these facilitation services will enable companies to access the financing they need
to maintain positive relationships with actors and small farmers in San Martín, Ucayali and Huánuco.
Some of these consulting companies will need technical assistance in value chain finance to fully
appreciate the opportunities present in the agroforestry value chains. While they are experienced at
structuring private capital investment agreements, they may be less knowledgeable of the agricultural
environment and agro-industrial businesses operating in our zone of influence.
TABLE 11: CALENDAR OF ACTIVITIES R4: INCREASE PRIVATE INVESTMENT WITHIN THE PRODUCTIVE CHAINS PROMOTED BY THE PERU CACAO ALLIANCE
DESCRIPTION OF ACTIVITIES AND SUB-ACTIVITIES
PERIOD (Oct. 2017 – Sept. 2018)
O. N. D. E. F. M. A. M. J. J. A. S.
A.4.1 Conclude strategy for investment promotion
a. Review CVs, select candidates for interview, conduct interviews
b. Make employment offers
c. Train new personnel
A.4.2 Identify investment opportunities within PCA partners and target regions
a. Develop web site content and prepare geo location data of viable investments
b. Launch investment portal
c. Ensure sponsorship of strategic partners (ProInversión, local banks, investors, etc.) for the investment summit
d. Send invitations for the investment summit
e. Develop and conclude the agenda and list of speakers/presenters
f. Develop marketing content
g. Host the 2018 Investors Summit
A.4.3 Forge and manage relationships with private investment fund managers and FIs
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a. Continue to identify investors and understand their investments orders/needs
b. Support the network of transaction advisors to identify investors and accommodate their investment needs
c. Facilitate new investments as they arise, assigning transaction advisors as required
A.4.4 Identify and package the investment proposals
a. Identify and package the high value investment proposals which are aligned with investor interests
b. Update and broaden the portfolio opportunities
A.4.5 Facilitate access for SMEs/cooperatives to credit and investment
a. Sign pay-for-performance contracts with transaction consultants
b. Monitor performance of transaction consultants and support these as needed to guarantee progress
c. Transaction consultants sign memorandums of understanding with supported firms seeking financing
d. Close first investments
e. Provide technical assistance to transaction consultants as required
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COMMUNICATIONS
PCA’s communications strategy integrates four approaches: (1) communication activities that
promote behavior change, (2) social marketing, (3) branding/brand management and (4) knowledge
management. By using these four approaches simultaneously, we can address the communications
needs of our many different audiences (i.e. farmers, cooperatives, private sector and the
international market for agroforestry products). PCA’s communications goals and activities are laid
out in tables 12 and 13 below:
TABLE N° 12: COMMUNICATIONS STRATEGY GOALS AND ACTIVITIES Goals Approaches
Stakeholder communities
and audiences
1. Promote good agricultural practices to increase yields of cacao and agroforestry products of PCA-supported families
- Communication for behavior change - Knowledge management
Activities
✓ Continue multimedia campaigns to promote key activities in technical areas. The activities include: production of audiovisual material, messages on regional radio stations, newsletters, post-Schools of Excellence work and the creation of animated characters that support best practices (e.g. “Los SuperProductivos”).
Organized and non-organized Alliance partner farmers
✓ Disseminate technical material in practical products targeting farmers. These will be validated on site so that the products (manuals, etc.) can be regularly used by PCA partners in the field.
✓ Develop, in coordination with the technical team, text and voice messages to promote good and environmentally-sound agricultural practices that are cost-beneficial for farmers.
✓ Identify success stories to promote positive cases for replication.
✓ Deepen communication with PCA farmers via SMS. Provide a rapid text message channel for which the communications team has already been trained by the technical team.
✓ Promote Alliance participation in regional events to assess the cost-benefit ratio of such participation, predicting the impacts on our partner farmers
✓ Support active presence of private technology and input suppliers in PCA events to support confidence in PCA’a activities.
✓ Implement a communication campaign to spread information and avoid confusion around European Union regulations regarding cadmium content in chocolate.
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Goal Approaches
Stakeholder communities
and audiences
2. Improve PCA’s post-harvest cacao processes to improve the quality of supply for national and international markets
- Communication for behavior change - Social marketing - Knowledge management
Activities
✓ Specific messages will be developed for each audience. These must be permanently reviewed and updated.
Farmers/ cooperatives and private companies that carry out post-harvest processes
✓ Social media will be used to disseminate information related to key concepts on post-harvest processes. We will reinforce how higher quality equals more sales. A digital marketing campaign will be developed with private alliance partner companies, notably cooperatives and chocolate companies.
✓ Educational audiovisual materials will be made available to train farmers to carry out post-harvest processes according to market demands. The sale of cacao in pulp form will be promoted in accordance with this plan.
✓ Use communications to strengthen the organizational capacity of the farmers to sell greater volumes of wet beans to cooperatives and companies. Promote membership of farmers in associations.
Goals Approaches Stakeholder communities
and audiences
3. Promote a culture of accessing finance for new agribusiness investment
- Communication for behavior change - Knowledge management
Activities
✓ In collaboration with FIs, develop a financial inclusion strategy by reviewing existing manuals and guidelines to standardize concepts and determine their diffusion and use in the field.
Organized and non-organized Alliance partner farmers
✓ Map the channels by which information is passed to target audiences to assess impact. Our new products will be added to this map such as radio spots and videos to carry out a campaign to promote financial literacy and new investment in cacao plots.
✓ The cost benefit ratio for farmers investing in their plots will be demonstrated in
communications materials/tools.
✓ Coordinate communications work with regional offices and financial partners to amplify efforts to build a financially literate base of farmers.
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Below is Calendar of Activities for communications activities in Year two.
Goals Approaches Stakeholder communities
and audiences
4. Position the Alliance as an entity that facilitates private investment for cacao and agroforestry system products
- Knowledge management - Branding, brand management
and architecture - Social marketing
Activities
✓ We will attract greater private investment for the cacao, banana and timber chains by positioning our communications activities strategically. During year two, we will focus our efforts on the Alliance participating in the “Salón del Cacao y Chocolate” in Lima, in order to have greater contact with the international cacao and chocolate markets and position Peru as a reliable source of high quality, fine flavor cacao.
National and international cacao, banana and timber buyers
✓ Events such as ExpoAmazónica and ExpoAlimentaria are less strategic for the Alliance. Rather, participation in international events where buyers are present, will be prioritized in order to attract new, foreign investment in Peru and to promote the quality of Peruvian cacao as being highly competitive worldwide.
✓ Work will be carried out with the commercial offices of PromPerú (OCEX) at the
international level to disseminate key messages and diffuse the “Peruvian Cacao Kit” as marketable and promote the “Peru” brand as one that guarantees fine flavor quality. We will include information on cadmium in Peru among diplomatic missions in Europe, to better inform about compliance issues.
✓ We will develop monthly products (Alianza Express, Alianza Te Acompaña) and develop a webpage that will be an integrated platform of inputs to communicate the potential strengths of Peruvian cacao and other agroforestry products.
✓ The webpage will contain a map of private investments that will facilitate decision-
making among national and international private sector players.
✓ In December 2017, we will hold the second Alliance private partners meeting to analyze progress made to date, and to discuss the work plan for 2018. We will seek to deepen development of joint activities that allow a mass diffusion of the Alliance’s key messages.
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TABLE 13: COMMUNICATIONS CALENDAR OF ACTIVITIES FOR YEAR TWO
Goals/ Months Year 2 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
1. Promote good agricultural practices for improved cacao yields
Conduct multimedia campaigns promoting main technical activities
Disseminate technical material/validation of technical materials
Identify and codify success stories
Deliver text message responses (SMS) to farmers
Conduct crisis prevention campaign on EU regulations and cadmium in chocolate
2. Improve PCA’s post-harvest cacao processes to improve the quality of supply for national and international markets
Design and update messages according to each audience
Conduct digital marketing campaign on social media (coinciding with priority international events)
Develop tutorial videos for appropriate harvest and sale of cacao in pulp form
3. Promote a culture of accessing finance for new agribusiness investment
Review existing financial literacy manuals and guides (standardization of concepts)
Develop new, audiovisual materials for financial literacy
Conduct cost-benefit ratio of cacao investment campaign
4. Position the Alliance as a private investment facilitating entity in the cacao and agroforestry system value chains
Participate in Salón del Cacao y Chocolate 2017
Work with commercial attachés to diffuse the “Peruvian Cacao Kit” and messages related to cadmium
Develop the PCA web page including the private investment map
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GENDER
PCA’s gender team conducted a participatory gender analysis last year that allowed us to learn
more about the needs of our implementation team and our Alliance partners with respect to their
understanding of gender concepts. As part of this analysis, we gathered proposals from all the
different actors to plan our gender activities for year two. With improved knowledge of PCA’s needs,
we propose two strategic lines of action to improve the manner in which issues of gender are fully
integrated within PCA’s implementation:
1. Train the PCA team and its field team
The gender analysis highlighted the need to prioritize training of field teams on a variety of topics,
including the concepts of equity and equality, the importance of economic empowerment for women,
and gender-specific division of labor. Our gender team will develop a training curriculum and
methodology, including proposed dates for training, to share with field teams. Short sessions
relating to gender are required to improve the technical team’s understanding to minimal levels, with
simple materials and tools that they can apply in their work. The gender team will work with the
communications team to develop relevant training materials.
2. Support the economic empowerment of women in farmer organizations
The gender team includes a consultant that will work with six farmer associations in the three
regions on organizational strengthening related to association membership. According to data
collected during organizational assessments, farmer associations have no or very few
actions/initiatives geared towards issues of gender. PCA will continue to work with organizations
and associations to develop strategies to increase women’s participation, including holding sessions
on topics such as the value of equity/equality, gender roles, and the benefits of involving women and
the family in cooperative activities. Our gender team will ensure that the training methodologies and
contents of training sessions on issues of membership and financial management include a gender
perspective, and that we have levels of female participation in line with their representation within the
agroforestry value chains.
The gender team, led by PCA partner Uniterra, will further organize gender sensitization activities on
and around important dates (rural women’s day, international women’s day) to highlight the
involvement of female farmers in the target value chains, and the work undertaken by female
empowerment organizations. Supporting these events will shed light on how women are involved in
the value chains in the three regions, with the goal of supporting future relationships with SCMs. We
also want to use these events to sensitize partner organizations on the importance of involving
women in capacity building and decision-making.
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TABLE 14: CALENDAR OF ACTIVITIES FOR GENDER INTEGRATION ACTIVITIES
Activities Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
1. Train the PCA team and the field team (elite technicians/facilitator technicians)
Develop and facilitate workshops for the PCA and field teams in using methodologies adapted to the public.
Together with the communications team create the support material for workshops.
2. Support the economic empowerment of women in farmer organizations
Sensitize organizations in gender equality (Organizational strengthening, membership).
Develop a gender action plan according to the needs of partner organizations/associations.
Organize meetings for women farmer leaders around key events.
Support the communications team highlight and disseminate female success stories.
3.Conduct related monitoring and evaluation activities
Conduct qualitative analysis of data collected from focus groups. Present data to the PCA project team.
Monitor and evaluate the gender indicator with the support of the respective technical areas and make changes to work plans as required
Host feedback meeting for the gender action plan 2017-18.
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MONITORING AND EVALUATION
Monitoring and evaluation (M&E) are management tools that allow PCA’s project implementation team
to make informed decisions. We monitor and evaluate everything from implementation efficiency, to
the efficient use of resources, and the extent to which the changes in the outcomes can be attributed
to the project activities.
The PCA M&E team has been modified to incorporate three monitoring and evaluation specialists, one
from each regional office. This allows for improved data management of each activity, as well as
greater visibility among the project team throughout implementation as to our progress meeting the
goals and targets for each project component.
M&E activities in Year two will encompass the following:
1. CONDUCT A SURVEY TO MEASURE PROGRESS VS. ANNUAL INDICATORS
To measure progress vs. the required indicators (e.g. income, cacao productivity, sales, etc.) a
survey methodology will be used to measure vs. the baseline, considering a segmentation of
producers per region and 16 micro corridors identified in the regions of Huánuco, San Martín and
Ucayali.
2. IMPLEMENT PCA’S MONITORING AND EVALUATION SYSTEM
a. Implement mobile tools
b. Implement a SMS baseline to support project farmers and Alliance partners in improved
yields
c. Systematize and incorporate data resulting from Alliance and partner activities
3. OPERATIONALIZE THE WEB PAGE AND INVESTMENT PROMOTION SYSTEM
The PCA investment portal will be designed and implemented in collaboration with the project’s
communications program, and the M&E will collect data on new investment pipeline opportunities,
agreements completed for transaction assistance, and closed deals.
We are planning to implement a GIS tool for the investment promotion system to identify potential
investments for new investors. To put this in place, we will need to update our datasets and gather
new data. New, relevant data for investors could include information related to logistics (e.g.
roads), infrastructure (e.g. electricity, water sources, post-harvest facilities, cooperatives) rainfall,
altitude, temperature and other data points.
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TABLE 15: MONITORING AND EVALUATION ACTIVITIES CALENDAR
Code / Activities Units
Month / Year (Sep.2017 – Ago. 2018)
Sep.-17
Oct.-17
Nov.-17
Dec.-17
Jan.- 18
Feb.-18
Mar.-18
Abr.-18
May-18
Jun.-18
Jul.-18
Aug .-18
1. INSTITUTIONAL PLANNING
1.1 ACTIVITIES THAT SUPPORT THE REGIONAL OFFICES
1.1.1 Organize and systematize support documents for in-field activities.
Report
1.1.2 Support field offices on topics related to the Alliance strategy, procedures, M&E Systems.
Report
1.1.3 Produce Reports, alerts and maps
Report
1.2 ALLIANCE PARTNERS
1.2.1 Organize and systematize support documents for activities carried out individually or jointly with the Alliance.
Report
1.2.2 Provide support in data analysis, mapping and information systems.
Report
2. ALLIANCE MONITORING (Indicators)
2.1 ANNUAL MEASUREMENT OF INDICATORS
2.1.1 Conduct instrument planning and design
Report
2.1.2 Execute fieldwork with regional offices
-
2.1.3 Measure outcomes. Report
2.2 MONITORING WITH DEVIDA-PCA-USAID
2.2.1 Take part in joint monitoring activities
Report
2.3 INTERNAL MONITORING
2.2.1 Verify data quality of data reported to the monitoring and evaluation system
Report
2.2.2 Conduct other monitoring and environmental protection activities
Report
2.2.3 Monitor progress of joint activities with PCA Partners.
Report
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Code / Activities Units
Month / Year (Sep.2017 – Ago. 2018)
Sep.-17
Oct.-17
Nov.-17
Dec.-17
Jan.- 18
Feb.-18
Mar.-18
Abr.-18
May-18
Jun.-18
Jul.-18
Aug .-18
3. Monitoring and evaluation system
3.1 SYSTEM MANAGEMENT
3.1.1 Produce and manage reports and system alerts
Various
3.1.2 Produce databases and reports
Report
3.1.3 Review and confirm data quality
Report
3.2 Administrative and financial support
3.2.1 Support the design of the budget monitoring system
Report
3.2.2 Support the implementation of the budget monitoring system
System
3.3 IMPLEMENTATION OF MOBILE TOOLS
3.3.1 Pilot the use of mobile applications for data gathering.
Report
3.3.2 Implement the first version of the Alliance’s M&E System in its mobile version
APP System
3.3.6 Design and implement the mobile SMS Service to provide technical assistance to farmers and partners.
SMS System
4. Web page and investment promotion system
4.1 ALLIANCE WEB PAGE
4.1.1 Support the design of the Alliance web page
Report
4.1.2 Implement the first version of the web page
WEB page
4.2 Investment promotion system
4.2.1 Support the design of the investment promotion web portal
Report
4.2.2 Implement the first version of the investment promotion web based system.
System
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LEVERAGE
In year two, we expect to leverage US$6,327,000 of which US$621,857 will be in the form of new, in-
kind investment, and US$5,705,000 in cash investments. The main leveraging sources and candidates
for leverage resources include:
1. Private partners: We expect private partners to make cash contributions worth US
$4,915,143. The main partners we predict will make these investments are Ramsa, Ora
Azul, JM Ucayali, Oiko Trading, Agroindustria Romex, Cooperativa Agraria Cacaotera
Acopagro Limitada, and Inka Crops.
2. Partner SCMs: We expect in-kind contributions worth US $216,600 and cash contributions
valued at US$400,000. These investments will come from partners such as: Kato SAC,
Central Cacao de Aroma, Cooperativa Agraria El gran Saposoa Limitada, Cooperativa
Agraria Allima Cacao, Cooperativa Agraria Industrial Monte Alegre, and the Peruvian
Association of Cacao Producers.
3. Technology partners: We estimate in-kind contributions from these actors valued at US
$131,257, and cash contributions worth US$90,000. We believe that PCA partners San
Fernando, Husqvarna, Yara and Naandanjain will make these investments in Year two.
4. Financial partners: We estimate that our FI partners will make in-kind investments worth
US $274,000 and cash contributions worth US $300,000. FI partners such as Agrobanco,
Financiera Confianza and new actors such as Root Capital and Oiko Capital are expected
to make these sorts of investments.
TABLE 16: LEVERAGE PROJECTIONS FOR YEAR TWO
Partner Description US$ in kind US$ cash US$ Total
Private partners Contribution in investments in fixed assets, plantations, construction of fermentation modules, construction of post-harvest infrastructure, stockpile centers, machinery and equipment.
0 4,915,143 4,915,143
Partner SCMs Contribution in investments in post-harvest infrastructure, stockpile centers, equipment, and personnel.
216,600 400,000 616,600
Technology partners
Inputs, training and irrigation infrastructure.
131,257 90,000 221,257
Financial partners Training, loan placements and other expenditures.
274,000 300,000 574,000
Total Year 2 Expected Leverage
621,857 5,705,143 6,327,000
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ENVIRONMENTAL COMPLIANCE
To implement our approved Environmental Monitoring and Mitigation Plan (EMMP), PCA will work
closely with the National Commission for Development and Life Without Drugs (DEVIDA) to coordinate
our long-term environmental monitoring with this entity and with personnel from each of our regional
offices.
Two internal environmental audits are planned for Year two (in September 2017 and April 2018) to
assess the efficiency and efficacy of environmental mitigation measures for PCA partner farmers. The
outcomes of the environmental audit will be included in a report and will be used to generate a list of
recommendations and new technical proposals to improve and complement the EMMP in Year three.
This year PCA will design an environmental review form to be used by our approved investment
transaction advisors to ensure that any new investments promoted by the program are in line with our
EMMP and environmental rules and regulations of USAID and the Government of Peru. These ERFs
will be submitted to USAID for approval, and will be required prior to paying any transaction advisors
for successful investment deal closure.
Our ultimate goal with PCA’s environmental compliance activities is to avoid any negative
environmental impact in Peru’s Amazon from implementation of our productive, post-harvest
processing, marketing, finance or investment activities in the value chains of cacao, banana and forest
species.
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TABLE 17: ENVIRONMENTAL COMPLIANCE CALENDAR OF ACTIVITIES
Activities 2017 2018
Set Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
Conduct environmental monitoring
Select farmers to be surveyed in coordination with the PCA M&E
Conduct field visits for environmental data gathering – Ucayali
Conduct field visits for environmental data gathering – Huánuco
Conduct field visits for environmental data gathering – San Martín
Develop the environmental monitoring report
Complete the environmental compliance report (ECR) Year 1 and PMMA Year 2.
Meet with technicians to analyze the extent to which we fulfilled the EMMP for Year 1.
Systematize information gathered
Develop the environmental compliance report (ECR) for Year 1.
Develop the EMMP for Year 2.
Disseminate the Year 2 EMMP with the PCA technical team
Share EMMP with Ucayali team
Share EMMP with Huánuco team
Share EMMP with San Martin team
Conduct farmer training
Conduct consistent technical assistance and training for partners in the application of good environmental practices in Ucayali, Huánuco, San Martín
Implement ERF system for investment transaction advisors
Design ERF
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Train transaction advisors in use of ERF
Submit completed ERFs to USAID each quarter for approval
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ADMINISTRATION AND FINANCE
A. ADMINISTRATION
Last year, we executed a number of activities related to new project start up to ensure proper
administration, completing all of our Year one administrative goals.
At the beginning of Year two, we are designing a number of activities to further improve our
administrative capabilities and to support our technical teams implement the program most
efficiently, ensuring proper internal controls.
Below are some of the administrative issues we will tackle in Year two of PCA:
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B. FINANCIAL MANAGEMENT AND BUDGETS
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TABLE 18: EXPENSE SUMMARY FOR YEAR 1 AND EXPENDITURE PROJECTIONS FOR YEAR 2
TABLE 19: EXPENSE SUMMARY PER CLINS FOR YEAR 1 AND EXPENDITURE PROJECTIONS FOR YEAR
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