Choba Choba Foundation VISUAL REPORT Q1 2024

External Audit of our project "Professional Agroecology"

Performed in March 2024, a thorough external audit of our 3-year Professional Agroecology project, concluded positively on our intervention's impact. Through meticulous documentation review, interviews with farmers and local staff, and evaluation of key performance indicators, the auditors could confirm notable improvements.

Enhanced yields and increased income reflect tangible progress, while the transition to resilient agroforestry systems underscores farmers commitment to sustainability. The audit report also highlights the innovative nature of our intervention and its potential for replication and scalability, in particular considering our Farmer Entrepreneurship Program. For further insights into our methodology and findings, the comprehensive audit report is available upon request.

“Professional Agroecology” project: final steps in organic fertilization

Due to some delays experienced in our fertilization campaign in 2021 and 2022 linked to the lack of organic input availability, our campaign was thus extended to 2024 in order to fully complete our program. Within the established financing framework, we financed the acquisition of organic inputs (21.25 tons of Guano de Isla, 22.29 tons of Fertiphos Tropical, and 17 tons of Dolomita).

In 2024, our fertilization program plans to cover 97.6 hectares of cacao plantations. A slight decrease in the area compared to the previous year, attributed to plots of some farmers that left the cooperative and, consequently, are not included in the 2024 fertilization and control plan. However, we have integrated into our fertilization plan additional plots that are being fertilized for the first time.

More farmers are testing our Digital Pocket Assistant

Trialed with 5 pioneering farmers in 2023, the "Asistente de Bosillo" is now used by a broader group of farmers - in february 5 new farmers were trained in the use of the WhatsApp-Based form and now a total of 9 producers are consistently inputting data through this digital tool. Some thecnical problems came up regarding the systematization of the recorded information during the initial months, and this required adjustments in the tool's backend.

However, by the end of March, we successfully finished this process in collaboration with our technical partner, AGROS. To avoid data loss, the cooperative is extending the testing phase until the end of Q2. During this period physical and digital tools are used in parallel. An exhaustive comparison of the registered data through both tools will allow the start of the process to replace the physical Farmer Field Books with the digital tool in Q3.

Update on the transition to agroforestry systems

We are in the final stages of the RRI plan (Renovation, Rehabilitation and Installation of agroforestry systems) in these early months of 2024. After thorough review and field verification, we can conclude that 12.8 hectares are under renovation, 30.2 hectares under rehabilitation, and 17.5 hectares under installation, totaling 60.5 hectares at the beginning of 2024. The variation between the initially planned and actual area at the close of this quarter is justified by the removal of 13.35 hectares from the plan, due to both producer decisions and non-compliance with planned activities.

During field verifications, it was observed that approximately 73% of fruit trees and 61% of distributed timber trees have survived in the fields. We noted that for some timber trees - especially tornillo (Cedrelinga catenaeformis) - adaptability in some areas is unfavorable, leading to increased mortality rates and prompting us to replant with other species. Overall, these final evaluations enable us to plan purchases for replanting.

Farmer segmentation approach

Expanding on the successful segmentation process piloted in the Farmer Entrepreneurship Program (FEP), we're broadening its application within our cooperative, particularly focusing on agronomical assistance. Farmers are now grouped into three segments based on criteria like adherence to the Yearly Operational Plan (POA), scores in the Farmer Field Book (FFB), meeting participation, cacao farm productivity, and age.

Each group receives tailored support from the CoopACCC (Choba Choba Cooperative). The most advanced group meets on a quarterly basis with our technical team, and the other groups meet monthly. Additionally, field assistance and FFB supervision are prioritized for the less advanced group. This streamlined approach optimizes the time of the human resources and empowers high-performing farmers with greater autonomy and responsibility. Encouragingly, 33% of producers are in the highest performing group, and 42% in the second group.

Green manure and fertilization trials

As you may recall, towards the end of 2023, we faced severe flooding in the Huayabamba valley. It affected the cacao plots where we are conducting our investigation on the use of legume and on-farm organic residues, requiring the relocation of these trials to non-flood-prone areas. To achieve this, new plots were selected based on pre-flood results, and simultaneously adjusting protocols to meet each study's specific needs were designed.

Regarding our mulch trials, we selected three plots and repeatedly applied three different treatments (T1: accumulation of organic waste under tree canopies, T2: accumulation between cacao trees with subsequent incorporation into the plants; and T3: accumulation without intervention). In addition to previously measured parameters reported in Q4-2023, soil compaction measurement using a penetrometer has been added.

Cacao Field Lab: Sharing knoweldge beyond our communities

A primary aim of the Cacao Field Lab Project is to disseminate effective agroecological practices to cacao farmers at various scales, spanning regional, national, and international levels. A preliminary step toward achieving this objective was taken in past months through the preparation of a capacity-building session focused on diversified agroforestry systems in cacao, conducted for farmers and technicians affiliated with the Norandino Cooperative.

By the time we write this report, the first activities were performed. For two days, the participants received training on agroforestry principles, diversified plot design, and practical methodologies for implementation. This capacity-building effort will be reinforced by a field visit in August of the Norandino's farmers to the CoopACCC farms / Cacao Field Lab. A monitoring visit of the Choba Choba technical team to the Norandino Cooperative is planned in Q4, to assess the application of acquired concepts and follow up on the learnings. This capacity-building initiative is an integral component of the "Cocoa, Trees, and Climate Action – Strategies to Adapt to Climate Change" project, jointly undertaken by Norandino and Stella Bernrain.

A new coordinator for our Forest Conservation project

After the resignation of the project coordinator last year, we urgently sought a replacement to oversee ongoing activities starting in 2024. We were fortunate to have Rosario del Castillo Paima step in as a motivated and responsible replacement. The initial three months presented challenges for Rosario as she quickly familiarized herself with the project's intervention logic, integrated with the team and conservation organizations, and planned and executed pending activities.

Despite these obstacles, significant progress was achieved, including equipping three schools in intervention villages with satellite internet for environmental education classes, installing four informational signs about conservation concessions in communities, and conducting crucial interviews with conservation association members for strategic institutional planning. We have a variety of activities planned for the remaining months and are confident that our new project team will remain steadfast in achieving our goals.

Selecting elite trees for our clonal garden

In the middle of the quarter, we received the results of the study conducted between 2022 and 2023 by Dr. Oscar Cabezas on the productive potential and tolerance to pests and diseases of the 30 promising trees selected in 2022. These results add to those of the self-compatibility study carried out by Cacao Services at the end of 2023, as well as the sensory evaluation studies previously conducted by APPCACAO according to international quality standards.

From the combination of these results, a total of 9 elite genotypes have been identified based on the evaluated characteristics and established criteria, standing out in some cases for their outstanding performance in multiple evaluation criteria. The selected genotypes are: CCH10, CCH-14, CCH-20, CCH-24, CCH-38, CCH-44, CCH-45, CCH-47, and CCH-86. These will be transferred to the clonal garden, for which cacao tree nurseries have already been established, and grafting is being planned throughout this first semester.

Did you know?

The Chocolate Scorecard is coordinated by Be Slavery Free with universities, consultants and civil society groups engaging in transforming the chocolate industry. Published every year for Easter, it ranks and grades chocolate companies on key sustainability issues. In 2024 Choba Choba AG participated to the survey for the first time and was recognized as one of the most sustainable chocolate brands, "leading in policy and practice".