Certifying Andean Cacao for community,climate & biodiversity impact

Andean Cacao’s farm is a one-of-a-kind project that is generating considerable benefits and impacts for a wide range of stakeholders.

The farm is currently regenerating over 2,000 hectares of formerly degraded cattle grazing land in Colombia into a highly productive, sustainable farm with the goal of delivering quality carbon-neutral cacao beans. While doing so, the project is not only working towards improving the carbon sequestration potential and footprint of the farm, but also generating benefits for soil health and biodiversity, as well as creating living-wage job opportunities, and critical support for neighboring communities.

The farm is the latest step in a recently announced joint venture between 12Tree and Mars Wrigley, and forms part of the latter’s journey through its Cocoa for Generations strategy to build a modern, inclusive, and sustainable cacao supply chain. It shows a continued commitment to trial new climate-smart and modern agriculture solutions, by focusing on three areas of impact: creating healthy soil while capturing carbon and boosting biodiversity; improving livelihoods and community resilience; and exchanging scientific knowledge and cacao agronomy innovation to increase productivity.

One of the ultimate goals for Andean Cacao by end of 2022 is to have the farm’s positive social and environmental impacts certified by an independent third party against the Verified Carbon Standard (VCS) and Climate, Community and Biodiversity (CCB) Standards.

Since its launch in 2006, the VCS has grown into the world’s largest voluntary carbon credit program, registering over 1,700 carbon reduction projects worldwide that have reduced or removed more than 800 million tons of CO2 equivalent from the atmosphere. The CCB Standard in turn helps differentiate and identify projects that simultaneously address climate change, support local communities and smallholders, and conserve biodiversity.

12Tree and Andean Cacao have selected Terra Global Capital as our ideal carbon development partner for this venture. Terra Global is a global leader in sustainable forest and agriculture program development and land-use greenhouse gas quantification and finance.

The teams from 12Tree, Andean Cacao and Terra Global are currently working collaboratively on all aspects of project development from field data collection to the incorporation of 12Tree requirements as investors, to Mars’ goals to reduce emissions through their supply chains. At the moment, teams are busy carrying out all of the respective field measurements as well as setting up the required monitoring and impact evaluations systems. To date, the initiative has arrived at the ideal combination of available methodologies, as well as a number of supporting tools, in order to best quantify and verify the additional emission reductions and removals that the farm operations will achieve, and that will ultimately be used for insetting or offsetting purposes.

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This article is an extract of the 2022 12Tree Sustainability Report. Download the report to learn more about our regenerative approach to farming illustrated in several farm case studies, articles and partner interviews.

Learn more about Andean Cacao’s joint venture with Mars Wrigley’s for a climate neutral cocoa bean.

Creating carbon credits

12Tree has selected Terra Global Capital as our ideal carbon development partner to help bring our portfolio of farms up to certification standard. Founded in 2006, Terra Global is a woman-run, women-owned for-profit social enterprise, and small business, whose mission is to facilitate financially, socially, and environmentally sustainable landscapes. In May of this 2022, we had the privilege of interviewing Leslie Durschinger, CEO of Terra Global, and Carolina Oleas, Project Manager and Ag Specialist, about the nature of the certification work we are conducting with their aid.

It’s been said that truly additional and permanent storage of carbon may often be at odds with other financial considerations that govern how farmland is managed. To what degree do you agree or disagree with this statement?

This statement reflects the belief that adoption of carbon positive growing systems and management practices will reduce yields thus having a negative financial impact on profits. But in many cases, the opposite occurs particularly when you look over the long-term. Comparing agricultural practices focused on maximizing short-term yield to the adoption of long-term carbon positive farming often show that later has lower costs, lower risks, and higher productivity, plus the added value of carbon revenue. Integrative carbon-positive systems focus on components such as soil health and fertility which are prioritized to build and maintain a long-term productivity of the farm. The benefits of the increase of organic carbon in the soil are noticeable in the long run, thus it is important for farmers to have practical and accessible technologies to measure, monitor and observe the changes of the carbon in the soil and reduction in nitrous oxide, plus the continuous technical support during the transition process so farmers understand the carbon cycle and the possible effects on their crops and their profits. Through adoption of sustainable carbon positive practices, farmers can often increase their long-yield and crop revenue while lowering costs and reducing risk through building more resilience farms.

How do you think Terra’s particular approach to the design of our 12Tree project can help differentiate our carbon credits from others in the marketplace?

Terra Global provides continuous technical support to the projects and the staff on the ground for capturing the required data and quantifying the full range of carbon pools that produce reductions and removals from the sustainable agroforestry systems being promoted by 12Tree projects. This is done through in person and virtual trainings, building capacity, and providing on-going technical guidance on from everyday farm decisions regarding practices to monitoring to capture the data needed for market standard validation and monitoring to verify high quality multiple benefit emission reductions and removals. Through working in partnership with 12Trees with their expertise in agronomic management and Terra Global’s experience in producing high quality credits under carbon market standards, the teams carbon credits will be high environmental integrity and include the certification of the community benefits that are part of all of 12Trees projects.

What have been some of the main obstacles preventing the agriculture/food production sector from entering the carbon offset market, and how can we incentivize more farm operations to access carbon finance?

Some of the factors that have affected the increase of agricultural/ food production projects to enter the offset conservation are:

1. SIZE OF THE AVERAGE FARM PRODUCTION

81% of global crops are grown on farms less than 199 hectares. Big farms have a minority share in crop production, only contributing to 5% of worldwide crop growth. This shows that agricultural production is divided into small farm areas, making it difficult to consolidate the adoption of practices and less likely that small farmers will have the capital to invest in a carbon certification. One of the alternatives that have supported small farmers’ certifications are being part of grouped projects, where farms/land that have implemented similar agricultural practices can get certified as a group, facilitating the adoption of practices and credits in bigger areas.

2. LACK OF KNOWLEDGE ON THE STANDARDS & PROTOCOLS

This is a limiting factor, as information about standards is publicly available, but farmers do not know how to access it. It is important to continue the education process to make all actors involved, more familiar not only with the standards available but also with the processes to follow to get credits and maintain them.

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This article is an extract of the 2022 12Tree Sustainability Report. Download the report to learn more about our regenerative approach to farming illustrated in several farm case studies, articles and partner interviews.

Sustainability is our DNA: The 12Tree Theory of Change

We believe that a holistic approach to farming can turn the root cause of many of today’s problems into solutions. Successful outcomes require an intimate understanding of the landscape as well as the challenges facing the people living in it.

Our projects ensure financial returns, but moreover they sequester carbon, restore soils, protect key habitats, encourage ecological diversity, and ensure quality jobs and dignified livelihoods for workers and rural communities. To capture this vision and help translate it into practical actions that we can take -and impacts that we can measure-12Tree developed a “Theory of Change” model to be applied at each individual farm, and across our portfolio.

A Theory of Change (TOC) model explains an organizations path to impact by mapping how actions undertaken by the organization produce both short-term and long-term outcomes. By clearly identifying intended outcomes, a TOC helps an organization to identify the indicators that it should use to track progress towards a goal, and ultimately measure the degree to which the goal is achieved.

The three pillars of sustainable impact

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Our TOC is structured according to three key areas of sustainability: CLIMATE, COMMUNITY, and BIODIVERSITY. These pillars strategically align with the social and environmental impact verification methodologies of international standards for land management projects aimed at convincingly mitigating global climate change, conserving biodiversity, improving well-being, and reducing poverty in local communities. This includes the standards developed by the Climate, Community and Biodiversity Standards (CCB Standards) developed by Climate, Community & Biodiversity Alliance, a partnership of CARE, Conservation International, The Nature Conservancy, the Rainforest Alliance and the Wildlife Conservation Society.

The 12Tree TOC provides the vision and guidelines for why and how we will drive positive impact through our projects. That vision is made tangible through the detailed and monitorable actions developed in our corporate policies and standard operating procedures (SOP), which we track using progress and impact indicators. Independent third-party verifications and audits from internationally recognized and industryleading certification bodies help us to measure and report our impact to both investors and the general public. In every way, these different components of the Sustainability Framework are complimentary and reinforcing, meaning that as international standards become more rigorous, so too will our policies; likewise, as our vision becomes more ambitious over time, our progress and impact indicators will reflect the higher standards that we are achieving.

From concept to practical implementation

Each individual 12Tree farm builds sustainable practices into its operations in a way that is relevant to the specific ecological, cultural, and agronomic context of a protect. Moreover, the progress and impact indicators tracked by 12Tree are directly aligned with the United Nation’s Sustainable Development Goals (SDGs)- allowing us to evaluate our contribution towards these universal goals.

We look forward to reporting our progress and impact using this new framework from 2022 onward.

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This article is an extract of the 2022 12Tree Sustainability Report

Ambrosia: Coconut production in species-rich agroforestry systems

Daniel Dalet, the president of the operator company 12Tree Organics and manager of the Ambrosia farm in Nagua, Dominican Republic is a specialist in coconut farming and processing with more than 12 years of experience. We had the chance to ask him some questions regarding his passion for sustainable agriculture and coconut production as well as challenges they tackle on the farm.

Daniel, please tell us, why coconuts? What makes them special?

Coconut palms are beautiful crops with many different uses. This is what makes them so special, a simple plant meets many different consumer needs at the same time. From lifestyle products, to food, to industrial fibers. Another important advantage, in my opinion, is that the management of the coconut palm is comparatively simple. It is very resistant to extreme weather events, such as hurricanes. If continuous irrigation is provided and nutrients are supplied regularly, the coconut palm is very resilient.

Besides, coconuts present a very good business opportunity. The coconut market is severely underserved. It grows by rates of more than 10% every year whereas the supply rises just by 2%. This results in a huge potential for planted coconuts. And additionally, as a sustainable entrepreneur, I’m driven by impact. Not only social but environmental impact. We plant the coconut palms in regenerative agroforesty systems, which continuously improve the soil, the overall biodiversity and provides permanent jobs for many people in the regions. Such systems are more resilient to tackle the future challenges arising from climate change. Looking at the problems we have created through conventional agriculture, I see a future for sustainably grown coconut palms.

Daniel Dalet, president of 12Tree Organics

“Research has shown that the soil is alive. Therefore, we have to treat it like a living organism. Through conventional agriculture, we continue to destroy it, and this disrupts the entire carbon cycle of the planet. Climate change is the direct consequence of this and thus the big problem of how to feed the growing world population with ever poorer harvests.” - Daniel Dalet

That brings me directly to my next question: How are coconuts grown at the Ambrosia farm?

Coconuts are the main cash crop on the farm. They are the central element of all our plots. After an initial growing period in our nursery, the young seedlings are planted in an eight-by-eight triangle. In between they are intercropped with cacao or plantain, while the rest is covered with a dense green groundcover, also known as cover crops. Coconuts are the perfect element for such diverse systems, since they don’t take a lot of space due to their height, while they enrich the soil and act as shading elements within the system.

The coconut palms on our farm have a lifespan of about 15 years, after which we replant, otherwise they are too large for harvesting. Generally, harvesting coconut palms is not easy, so we have specially trained field workers. After harvesting, we remove the husk of the coconut, which is the soft fibrous shell. We granulate this into a powder, which we spread as organic fertilizer on all our fields. The coconut shell with the valuable copra is sold on the market to processors as well as exporters.

Agroforestry farming system at Ambrosia

Why do you think the market is still so undersupplied with coconuts, although demand is constantly increasing, and cultivation should therefore be very profitable?

I see the biggest hurdle in coconut production at the very beginning of the investment. The initial investment is high because you have to invest time and inputs in the crop for six years to get a productive coconut palm. In addition, everything depends on genetics. It is not easy to get highquality seeds, and that makes largescale investments even more difficult and risky. Only when the coconut palm bears fruits – you can tell if the quality of the seed were good or bad, so only after 5-6 years of cultivation. Therefore, you need experienced people on board if you want to get into this business. Also, you need a lot of space, flat land and continuous water supply to grow coconut palms properly. But if all these conditions are in place, if you have the land, the money and the right management, you can make it profitable through sustainability.

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This article is an extract of the 2022 12Tree Sustainability Report

Cuango: Non-chemical alternatives to weed control

Globally, weeds pose the greatest threat to crop yield, generating losses that surpass those caused by both pests and pathogens.

Defined by their rapid growth, high rate of reproduction, and persistence, weeds compete with crops for limited light, nutrient, and water resources. Once established, they are notoriously difficult to get rid of. In addition, their seeds often remain dormant in the soil for extended periods of time, suddenly re-emerging with rainfall or when soil is tilled or fertilized. Modern conventional farms typically rely on chemical treatments to control weeds. But the intensive use of chemicals also bears many environmental and health risks. Therefore, a general rethinking around weed control is underway. Many conventional, but especially sustainability-oriented farms, are exploring non-chemical alternatives. This is not an easy transformation- it takes time, is labor-intensive, and often entails considerable upfront costs. But on the other hand, the research and empirical evidence resoundingly proves that reducing chemical inputs leads to healthier, more productive crops and results in more resilient agricultural systems in harmony with people and nature.

Identifying alternative approaches to weed management is thus a critical part of 12Tree’s efforts to integrate regenerative agricultural practices across our portfolio. Towards this end, 12Tree carried out a study on non-chemical weed management approaches that could effectively help phase out glyphosate and other herbicides at our Cuango Farm in Panama.

Cuango and its weed problem

Brachiaria grass invading the plantain crops

The Cuango Farm sits along the Cuango River on the northern Atlantic coast of Panama. The tropical humid climate is ideal for the cultivation of cacao, plantains, and forestry. However, the farm is facing a major challenge in the form of heavy weed pressure from Brachiaria grasses. Brachiaria grasses are a non-native, invasive grass species introduced by the former landowner to serve as feedstock for cattle. For decades, the grasses went unmanaged across the property, resulting in their ubiquitous presence across the farm, as well as in a large Brachiaria grass seedbank. When 12Tree took over the property and began planting productive crops, the farm management team faced tremendous weed pressure from these grasses. As areas were cleared of vegetation and the crop seedlings were planted, Brachiaria grasses grew back and spread, affecting the growth of the seedlings and depriving them of light, space, and nutrients- essentially choking them.

Exploring non-chemical treatments for Brachiaria

Over the past 2-3 years, the team around Emily Fortney Alvarez (general manager) and Roderick Binns (farm manager) have undertaken the Herculean task of combatting this overwhelming weed pressure while simultaneously reducing herbicide dependency through the gradual introduction of non-chemical approaches.

The Cuango team relies on a combination of mechanical and cultural controls. Mechanical controls refer to physically cutting down the weeds, while cultural control refers to a change in practices which produces a fundamental change in weed dynamics. Cuango’s cultural control approach focuses on increased plant competition. If emerging Brachiaria grasses have no competition from vegetation besides the vulnerable cacao crop seedlings, they will easily destroy the young crops. However, when the ground is already covered with crops and shade elements are integrated into the system, it is more difficult for the Brachiaria grasses to take hold. For this reason, Cuango’s cacao is now grown as part of an agroforestry system that includes plantain, because the fast-growing plantain provides near immediate shade- which cacao seedlings love and the light-dependent Brachiaria grasses hate. This effect is further enhanced by leaving narrow strips of natural vegetation,referred to as “bio bands”. They provide both shade and a plant diversity, which reduces weed pressure from Brachiaria.

Lessons learned

Cacao and plantain intercropped with a dense mulch cover on the ground in order to prevent the emergence of weeds.

Cuango is an excellent example of a farm delicately balancing the short-term demands of an efficient and productive farm with the long-term vision of sustainable, regenerative land management. Through observation, research, and piloting, Cuango has explored different regenerative practices and identified some that are not effective for that farm - such as a failed experiment with pigeon pea ground cover- and some that work even better than expected- such as the cultural management weeds with shade crops, bio bands, and dense mulch cover. This combination of practices- along with the preservation of the primary forest directly surrounding the farm- has resulted in Cuango eliminating the use of pesticides, fungicides, and nematicides on its plantain crops! A system that is not disturbed by a regular input of chemicals, that has healthy and diverse vegetation and continuous ground cover, is a resilient system that can better cope with other external stressors and ultimately deliver better yields. While the farm is not certified organic and has not disavowed the use of chemical treatments for specific acute treatments- it has proven the enormous potential of non-chemical approaches to weed control.

Critical to the successes thus far has been an ambitious approach that bundles several non-chemical weed management methods, all of them with different modes of application and invariably different individual and cumulative effects. This means more effort and higher costs in the short term, and also less clarity on the direct effect of each method. For this reason, the meticulous record-keeping and diligent care by its dedicated management and field teams has been equally critical to the farm’s progress on this regenerative journey. If you are interested to dive deeper into this topic, please see the results from the Master thesis written on this topic.

Access the full Master thesis here.

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This article is an extract of the 2022 12Tree Sustainability Report

Chimelb: Cultivating coffee sustainably at high altitudes

Carlos Torrebiarte is the director of operations at Chimelb Farm in Guatemala. He has more than 20 years of experience in coffee cultivation and regenerative agriculture. Together with his team of about 174 permanent employees, he grows four different cash crops in intercropping systems on 1,738 hectares.

How is coffee cultivated on the Chimelb farm?

We cultivate Arabica coffee on a round 580 hectares of Chimelb farm. Chimelb, with its vast landscape of rolling hills, has a variety of microclimates in a relatively small area because of the constant changes in elevation. The Arabica coffee is grown at the farm’s highest elevations, on the top of these hills, surrounded by areas of natural and commercial forests. These higher altitudes provide the conditions necessary to accentuate the natural flavors of different arabica coffee varieties, improving their cupping quality. The coffee is grown under direct sunlight to increase its metabolism and productive potential, using grass cover crops to prevent erosion and improve physical, as well as microbiological qualities of the soil. The natural and commercial forests that we protect and manage, and that stretch across the coffee plantation, act as natural barriers against pests and preserve the biodiversity unique to the region. Producing coffee is a long-term commitment that requires a lot of hard work and determination. Unlike annual crops that are planted and harvested in the same year, coffee is a perennial crop with an expected life cycle of around 20 years. It has a long investment phase, as three years of careful management of young plantings must pass before a coffee plant is ready to produce its first important harvest. Five years after establishment, a coffee plant reaches its productive potential, and throughout the rest of its life, it is managed to produce in on and off cycles according to its natural biannual production cycle or through management practices such as pruning. In Chimelb, as is the case in most Guatemalan coffee farms, the coffee is harvested manually. Hundreds of collaborators from neighboring communities such as Cojaj and Campur are hired during the harvest season bringing much needed economic development opportunities for the region. Unlike perhaps all farms in the region, in Chimelb both ripe and green cherries are harvested together to simplify the task for the collaborators, allowing them to be more efficient.

So, after harvesting the coffee beans, what do you do with them?

All the field work is just the start of all the processes that must be completed so that a cup of coffee is ready to drink. There are different ways to complete this process but for Chimelb, after harvest, the next step in the process is the cherry coffee transformation in the wet mill. The wet mill gets its name from the fact that is uses water in one of the steps in the process to produce what is known as washed coffee[1].

Washed coffee only makes up approximately 50% of all coffee produced worldwide, but the great majority of the premium quality specialty coffee is washed. The wet milling process is a science as well as an art, with many factors such as time, drying temperature, and even anaerobic fermentation processes that must be considered to produce the best coffee possible. For Chimelb coffee, the process starts by sorting the ripe and green cherries by color and density. This results in three different channels where the coffee is processed, since the different colors and densities produce differing qualities of coffee. The ripe and dense cherries are transported to a depulper, where the pulp or skin of the cherry is removed to produce a wet parchment coffee. This wet parchment contains mucilage - or sugar compounds - in the outer layer of the seed, that go through a fermentation process that help the coffee achieve a better and more uniform flavor profile. Once it is ready, this wet parchment is washed to remove the mucilage, and transported to “guardiolas”, or rotary driers, so that it is dried into dry parchment. This dry parchment goes though one final preparation process, called dehusking, in the “dry mill”, and is then ready for export, roasting, and consumption. The green and lower density cherries go through a different process, known as a natural preparation. Unlike washed coffee, this type of coffee is dried without removing the outer skin. Therefore, its mucilage is not removed through the washing process. This process has to take place for the green and lower density cherries since the composition of the skin of these kinds of coffee makes it harder for it to be removed. Still, the quality of naturally processed coffee can be just as good as washed ones. One aspect of the wet milling process for Chimelb coffee that we are very proud of is that it uses much lower quantities of water compared to the industry standard. All the by-products from the process, such as the removed skin, are also further processed and can be used throughout the farm as fertilizer.

What are currently the main challenges for coffee production at your farm?

One of the main agronomical challenges we currently face is the increasing pressure from pest and diseases. Diseases like leaf rust have continuously intensified and become harder to combat through the years. In Chimelb, we are tackling these issues through the regenerative management practices used in the farm, such as the forestry buffer zones used in the system or intercropping with grass cover crops or other cash crop in the case of Robusta coffee. These practices lead to a more diverse plantation that more easily combats the spread of pest and diseases. Another important challenge is the increase in the amount and intensity of rainfalls, which can be especially risky in mountainous landscapes such as those found in Chimelb. Regenerative growing practices, such as the grass cover crop, are once again our most important tools to prevent the problems, such as soil erosion and nutrient runoff, that could result from excessive rainfalls if the ground was left uncovered. Despite these important challenges, I believe that the biggest challenge that coffee currently faces lies on the economic side of the industry. Coffee prices have remained stagnant throughout the last decades, while the capital necessary to invest and manage a farm keeps increasing. Crop diversification, regenerative practices and certifications such as Rainforest Alliance are all tools that we use in Chimelb to address this challenge. However, all these are very capital-intensive processes, especially in the short term. As a result, many coffee farmers in Guatemala and throughout the world, have had no choice but to abandon their way of life, as younger generations no longer want to be involved in a business that promises few returns despite the tremendous work that is involved in it. Coffee has a tremendous potential to be an engine for economic and social development in coffee producing countries, but as long as the price situation does not improve, I see it very hard for producers to implement all the management practices necessary to be sustainable.

[1] DEFINITION: “Washed coffee” refers to coffee that is dried after removing its outer skin, and “washing” off its mucilage

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This article is an extract of the 2022 12Tree Sustainability Report

Regenerative Agriculture: From aspiration to company standard

In some ways, regenerative agriculture has become the new buzzword, not unlike “sustainable” or “green” of the recent past. If you ask ten farmers what regenerative agriculture looks like, or what it accomplishes, you will likely get ten different answers. Over the past three years, 12Tree has dedicated significant time and resources to answering these very questions. And though we feel we are just beginning on this journey, we have been delighted with the results. It is our pleasure to share with you here our thoughts and experiences on regenerative agriculture.

So, what is regenerative agriculture? It is a set of practices focused on the active management of above-ground and below-ground biodiversity which bring economic, social, and environmental benefits to our farming systems. It is knowledge intensive agriculture that does not allow for prescriptions that are universally applied across farms, but instead requires practitioners to utilize their toolkit of practices to develop a tailored solution for each farm. It emphasizes the maximization of long-term profits, not through maximization of yields – the conventional mindset – but through the optimization of yields, inputs, and resources. Importantly, regenerative agriculture is not financially concessionary but instead can and should be more profitable than our current convention- and therein lies its power for global impact.

We see regenerative agriculture as the natural next step in the progression and professionalization of agriculture. The “green revolution”, “precision agriculture”, and “conventional agriculture” have all done important things for the world. It is because of these advances that we have been able to significantly reduce costs and improve access to food, directly contributing to reduced global hunger. Regenerative agriculture does not destroy these paradigms. Rather, it takes the best from each of them and adds the perspective and awareness that will be necessary to feed our growing population without destroying our planet.

Many potential benefits of regenerative agriculture have been advocated by professionals and organizations. From 12Tree’s perspective -given our research and empirical experience across our farms- we believe that regenerative agriculture has the power to make farms (large and small) more resilient to input price shocks and increase the profitability of food production.

How do we go about it then?

First and foremost, it is important to acknowledge that there is no silver bullet, no single practice, no prescription that will achieve all of the benefits above. Instead, it is the intelligent combination of regenerative practices given a farm’s regional, climactic, cultural, and crop context that enables these benefits. It is the system that drives the change. All of our farms utilize some combination of the following regenerative practices to achieve these objectives:

1. AGROFORESTRY SYSTEMS

Kalob Williams, Chief Operations Officer at 12Tree

These systems include a tree crop and more than one actively managed secondary or service species. In our farms, we have 17 distinct agroforestry systems that include 8 primary crop species, 6 forestry species, and various other support species. Compared to monocultures, this increased biodiversity promotes nutrient cycling and organic matter increases, reduces pest and disease pressure, and provides diversified cashflow. Additionally, these systems sequester significantly more carbon than their conventional counterparts.

2. KEEP THE SOIL COVERED

Uncovered soil is exposed to high temperatures, wind and water erosion, and compaction. By keeping our soils covered with cover crops or via non-chemical weed control we counteract these effects while also increasing nutrient cycling, improving soil water retention, and feeding belowground biodiversity.

3. NATURAL NITROGEN SOURCING

The largest part of most farm’s carbon footprint is related to the production, transport, and application of nitrogen fertilizers. By utilizing leguminous plants (beans) that are able to “fix” or capture and hold nitrogen in the soil, we reduce the need for nitrogen fertilizers, and therefore the carbon footprint of our products.

4. REDUCE DISTURBANCES

Many of the advances in agricultural technology involve physical and chemical disturbance of the soil that, when overused, destroy above- and below-ground biodiversity. We seek to reduce or eliminate chemical or physical disturbances in order to promote a thriving soil microbiome and ecosystem which in turn reduce pest and disease pressure, cycle nutrients, sequester carbon, and reduce reliance on external inputs.

5. PROMOTE DIVERSE LIFE

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Conventional agriculture has begun to look at a farm field as a laboratory. In extreme cases all life is eliminated except for the single crop that is planted. This creates an imbalance that leaves farms susceptible to pest and disease outbreaks and reduces the biodiversity of surrounding areas. Through activities such as on-site microbe propagation in our farm labs, compost tea production, predator population promotion, and insect population promotion, we seek to bring a balance of life to our farms that mitigates pest and disease pressure and creates symbiosis in the rhizosphere.

We feel we are just scratching the surface with the interventions we have made since the inception of our company but are happy to report that – next to a number of initial mistakes – we have seen several examples of success across our farms as we implement these practices. For example:

1. A 50% REDUCTION IN CHEMICAL

SPRAYS for the main banana disease “Sigatoka” and 75% reduction in sprays for mealybug at Platanera Rio Sixaola in Costa Rica. This is directly linked to the biodiversity existent in the production system that reduces pest and disease pressure.

2. ACHIEVING YIELD CURVES at Andean

Cacao in Colombia that are equal to or greater than the industry standard for cacao production, but doing so in a diverse agroforestry system with up to 6 actively managed species.

3. ELIMINATION OF PESTICIDE

FUNGICIDE, AND NEMATICIDE use on our plantains at Cuango in Panama. This is directly related to the biodiversity of the agroforestry system, the cover species, and the surrounding primary forest.

4. CONVERSION OF MORE THAN

4,000 HECTARES of cattle pastures into agroforestry systems which reverses the carbon footprint of the land. … and many more. Though we are happy with our success so far, we recognize that there is still so much for us to learn. We believe that the full potential of regenerative agriculture is yet to be fully understood and we are happy to be working together with many individuals and organizations to further develop the field.

Written by Kalob Williams, Chief Operations Officer at 12Tree

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This article is an extract of the 2022 12Tree Sustainability Report.

Choosing excellent cacao for making extraordinary chocolate: An interview with Swiss chocolatier La Flor.

Direct and transparent trade relationships are at the core of our sales operations. At 12Tree, we believe that in the face of volatile markets, trade relationships must be consistent, based on long-term alliances in which fair prices reflect the added value of regenerative and sustainable agricultural practices. By achieving higher and stable prices for our cacao beans we can, in turn, guarantee fair wages and a thriving work environment for our cacao farmers. One of our long-term cacao buyers is the chocolatier La Flor. The Swiss bean-to-bar chocolatier manufactures first-class, hand-made chocolate products using exclusively ethically and sustainably sourced cacao beans from small producers which they have personally met.

Our team has been pleased to welcome the team of La Flor at Hacienda Limon several times during the past years. Chocolatiers like La Flor make it possible to achieve fair sales prices that are resilient to market fluctuations. In this way we are able to guarantee fair income for our farm workers that withstand global challenges such as the pandemic. High quality standards are at the core of our cacao production to maintain these vital relationships with buyers. Ivo Müller is the co-founder and Head of Sales at La Flor. We wanted to know about his principles for choosing good cacao and what makes Hacienda Limon one of his top choices for La Flor’s handcrafted bean-to-bar chocolate.

Please tell us a little more about the founding of La Flor. How did your love for chocolate begin and develop?

My love for chocolate began in childhood, as I believe many people do, but my passion for making chocolate began in the 2000s when I learned to care for and cut cacao trees with my father at Faziebda Vera Cruz. I was able to help with harvesting and fermenting and learned a lot about the importance of biodiversity integrity in agroforestry.

What does it take to make excellent chocolate? What role do the cocoa beans play?

It plays a major role. For excellent chocolate you need excellent cacao - without high quality raw material you can't make excellent handcrafted chocolate.

What factors influence the quality of cocoa beans?

Chocolate quality can be evaluated similar to wine quality. Similar to grapes, cacao should be grown under the best conditions. Important factors are therefore local microclimate, soil conditions as well as the knowledge and experience of the farmers in the post-harvest process.

What is important to you when selecting cocoa beans for La Flor chocolate?

Our goal is to sell a product with complete integrity, i.e. safe, socially and environmentally responsible, with its own flavor profile and unique character. It is of great concern to us that social and environmental values are respected at the origin and implemented by the cocoa producers with their own conviction.

Please tell us a little more about your visit to 12Tree Farm Hacienda Limon. What makes this farm one of your top choices for cacao beans?

Hacienda Limon is unique in terms of the Arriba Nacional variety and also the post-harvest work is rather special, it is a real Heirloom Cacao. Moreover, it has perfect soil conditions for the nutty-fruity Arriba Nacional Cacao taste.

What makes Hacienda Limon cacao special?

The team of La Flor visiting Hacienda Limon.

For us, Hacienda Limon cacao is the symbol of Arriba Nacional cacao. The classic, slightly hazelnutty, fruity aroma is very popular with our customers. We are very pleased that 12Tree continues to select and promote the Nacional varieties at this plantation. We strongly believe that the Heirloom Cacao Preservation Fund will continue to nominate them. Moreover, Hacienda Limon cacao is grown organically, and we meet the same employees at all our visits on site. This speaks for excellent quality with high ethical standards.

What products does La Flor make with Hacienda Limon cacao?

We have several products with Hacienda Limon cacao in our range, but the 74% is one of our best-selling chocolate bars and right after that comes the 56% dark milk chocolate.

What is your vision for the future of La Flor chocolate?

We will continue to focus on exquisite, unique origin chocolates - which are our core competence.

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Learn more about La Flor chocolate and their exclusive products made from Hacienda Limon cacao.

Learn more about Hacienda Limon featured on La Flor’s website.

Interested in buying our cacao? Click here.

Photos: LaFlor

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We grow more than 10 principle crop species on our farms, from woody perennials such as coffee and cacao to spices such as cardamom to forestry species for timber production. All our agricultural products are produced using regenerative farming practices and are marketed directly through our own sales channels. The year 2021 was characterized by various challenges not only for our operations but also for our sales.  Next to the pandemic which has changed international trade dramatically, the Ukrainian crisis has shown immediate effects on the global food markets. Complex market fluctuations caused by lockdown policies, price volatility, increasing transportation costs and changes in consumer behaviour have created imbalances in global shipping and sales. These are examined in more detail by Jaume Martorell Mir, Head of Sales at 12Tree in our 2022 Sustainability Report. In addition, Jaume describes our strategy to ensure fair and cost efficient distribution despite these challenges.

Click here to read the complete article on “Overcoming volatile markets and sales challenges” on page 44 of the 12Tree Sustainability Report.

Andean Cacao: Mars Wrigley’s mission for a climate-neutral cocoa bean

In 2021, Mars Wrigley announced a joint climate-smart venture, Andean Cacao, with 12Tree and ECOM, one of the world’s largest suppliers of sustainable cacao beans.

Andean Cacao’s vision is to catalyze an industry shift, transforming formerly degraded land into a scalable, sustainable production model. The initial target for the venture is to regenerate 2,000+ hectares of pastureland in Colombia. We had the honor of interviewing Matthew Moudy, who leads Mars Wrigley’s Modern Sustainable Cocoa Farming strategy. He leads the initiative on Mars Wrigley’s side and works closely with the Andean Cacao team on a weekly basis. During the interview, we talked about the company’s overall sustainability strategy as well as their perspective and motivation to support Andean Cacao.

How does Mars Wrigley define sustainable cacao production?

The way cacao beans are produced today holds many challenges for us humans as well as nature. We aim to reshape the future of cacao by creating an inclusive, modern and sustainable supply chain. This means creating a cacao sector where human rights are respected, the environment is protected and everyone, especially cacao farmers, has the opportunity to thrive. It is still a fact that farmers, especially smallholders, are the most challenged actor in the food supply chain. They bear all the production risk, but often do not earn enough to provide a decent income. We want to ensure that supply chains are built in a way that allows people to thrive. And this goes beyond ensuring proper incomes and premiums, but also by supporting them to increase their productivity, and developing alternative large-scale farm models where farming communities can find decent job opportunities and wages. For us, protecting the planet goes far beyond meeting the bare minimum, such as no water and air pollution. It’s about reducing carbon footprint and stopping deforestation in our supply chain. Mars is a member of the World Cocoa Foundation’s Cocoa & Forests Initiative and a signatory to the CFI commitments to halt deforestation and restore forests in the global cacao supply chain. Our aim is to achieve a deforestation-free supply chain by 2025 and to further achieve carbon neutrality by 2050.

And how does Andean Cacao fit into this strategy?

Farm visit with Andean Cacao

Andean Cacao is our flagship project, in which we want to catalyze an industry shift, to prove how climate-smart cacao production can work at a large-scale. We made some big bets, transforming the cacao sector sustainably towards carbon neutrality, thriving farmers and all involved stakeholders of our supply chain… With Andean Cacao we can prove that such a transition is possible. The project is still in the transformation process, regenerating formerly degraded cattle grazing land into a highly productive, sustainable farm with the goal of delivering quality carbon-neutral cacao beans. The project seeks to improve carbon sequestration, soil health, and biodiversity, create living-wage job opportunities, and support neighbor communities. Another important aspect here is our land footprint. As our business continues to grow, we faced the question of how we ensure that we are not using land for cacao production that local people need to grow food in order to survive. Therefore, we made the commitment not to take up any more land in the supply chain. As part of Mars journey to become Net Zero by 2050, we have committed to have no greater land footprint in 2050 than we had in 2015 and foster smart-ag, regenerative and resilient practices in place within our supply chain. In order to achieve this, we need to be more productive on the land we already have - once again this is where Andean Cacao comes in.

What impresses you most about the project?

Every day we learn something new. What I really admire about Andean Cacao CEO Xavier Sagnieres and his team is that they are proactive instead of reactive. Each new insight is taken in and serves as the basis for the next decision or strategy adjustments. As a result, the project does not stop but gets better each year. The scale we are at today is tiny in comparison where we will be, so being able to make these learnings is super important. And second, Andean Cacao is showing that it works, that climate smart agriculture enables high productivity while continuously improving the health and well-being of the environment, the soil, and the people.

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This article is an extract of the 2022 12Tree Sustainability Report.

Read more about Mars Wrigley’s approach towards reshaping the future of cocoa supply chains in an exciting four-part series with The Economist.

A short introduction to cacao

While chocolate used to be a luxury good for the elite, today - in various forms - it is hard to imagine a supermarket without it. Whether as a soothing hot drink, as a spice or as a sweet chocolate bar between meals - cacao is popular all over the world, with a global consumption of almost 5 million tons of cacao beans per year. But where does our cacao actually come from and how does it get to our supermarket?

THEOBROMA CACAO - THE FOOD OF THE GODS

The cacao tree is called Theobroma Cacao L. in Latin and belongs to the mallow family. This plant family has been around for millions of years. The cacao tree has its origin in Central America, around present-day Mexico, Guatemala and Honduras. The ancestors of the Aztecs and the Mayas cultivated cacao from around the 4th century AD. From ground cacao, flavored with chili, vanilla and honey, the Aztecs prepared the first known drinking chocolate, the «Xocolatl» and they also used the cacao butter as medicine or for cosmetic purposes. Cacao beans were so valuable at that time that they were even used as currency! Today, the evergreen tree is cultivated in the tropical regions of Africa, Central and South America and Asia, as the humid climate of the tropics offers optimal growing conditions. Worldwide, cacao is cultivated by more than 5 million smallholder farmers. More than 65 % of the global harvest comes from West Africa, particularly from the Ivory Coast and Ghana, but Ecuador, Cameroon and Indonesia are also important growing countries.

FROM BEAN TO CHOCOLATE

The supply chain of the popular raw material is complex. The fruits of the cacao tree contain seeds that are coated in a viscous, sour pulp. These seeds resemble thick white beans, which is why we know them by the name “cacao beans”. To achieve the final product, cacao beans are first released from the pulp, then fermented, and then dried. These steps, in addition to the specific variety of the cacao plant, influence the flavor of the chocolate products. Further processing of the dried cacao beans often takes place in the consumer countries rather than in the growing regions. The cacao beans are processed into preliminary products (such as cacao liquor, butter, and powder) for chocolate production. This is followed by the journey to the supermarkets and from there to the consumers. Despite the high global demand for cacao products, little of the value added reaches its source. Many cacao growing families are poor, and continue to struggle to meet basic needs. In addition, forests are often cleared to create more cultivation area. Worldwide, cacao is one of the biggest drivers of agricultural deforestation and an important contributer to ongoing climate change.

CACAO AND CLIMATE CHANGE

The traditional way cacao has been grown is not only harmful to the climate but is also vulnerable to the effects of climate change. According to Researchers from the University of California at Berkeley, the cacao tree is particularly threatened by climate change because it has very specific growing conditions. The tropical tree needs warmth, but not more than 35°C. It also needs high humidity and sufficient rainfall. All these factors will no longer be guaranteed in the growing regions by 2050 as climate change progresses. Climate models predict that many of the regions currently growing cacao will no longer provide the necessary conditions by 2050- resulting in a sharp decline in cacao production from 2030 to 2050. This not only threatens the availability of chocolate and other cacao-based products. It also threatens the livelihoods of smallholder farmers who provide the bulk of the world’s production.

12Tree believes it has identified a successful model to grow cacao sustainably at scale. Our approach defies the current conventional wisdom that using sustainable practices is at odds with the production of large-scale, high quality cacao that achieves good prices. To address this, we’ve consolidated the cacao supply chain to make it more transparent and to enable higher income for the farmers. Additionally, we operate on a large scale using sustainable practices. With this approach, we are pioneers in the market.

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This article is an excerpt of the 2022 12Tree Sustainability Report.

Learn more about our 12Tree’s approach to cocoa production in the following videos:

Cacao with positive impact

Mayejak planting ceremony at Finca Chimelb

Fermentation and drying process at Finca Chimelb

Cacao Harvest at Finca Chimelb

How 12Tree Agroforestry Systems can help improve farmer’s livelihoods across Latin America.

70% of the world’s population who live in extreme poverty, live in rural areas. Regenerative agriculture can reduce poverty in the lives of those who depend on agriculture. 12Tree’s core commitments include eight out of the 17 Sustainable Development Goals; addressing global challenges such as poverty, climate change and environmental degradation.

Lenny Martinez, Head of Corporate Sustainability, and Irene Montes, Corporate Sustainability Manager at 12Tree share their experience and insights on social perspectives and development possibilities of agroforestry in Latin America.

 Could you please tell us more about your background and experience in Sustainable Agroforestry?

Irene Montes Corporate Sustainability Manager

Irene: I was introduced to agroforestry when I was 12 years old and my father started planting trees at our family’s farm in Colombia. At the time, we didn’t know what agroforestry was, we simply needed to change the way we were farming because it was depleting our soils, hurting our biodiversity and it was not profitable anymore. My father, an agronomist trained in the ways of the green revolution and conventional farming, realized that what he had been taught was ruining him. He turned to practices that were used to grow coffee in our region before the green revolution took over our country. Much later, when scientists, farmers and others from all over the world came to visit our farm, we learned that what we were doing was called agroforestry. 

Growing up as a witness of nature’s amazing capacity to regenerate itself had a profound effect on me. I wanted to learn more about the biological processes and ecological interactions that were behind all of this. So, I studied environmental science and later received a master’s degree in Forest Science and Agroforestry at Yale University. 

Through my work with UNDP, IFAD, The Nature Conservancy and WRI, I had the opportunity to participate in the development of national and regional agricultural development projects in Asia, Latin America and Africa. Some projects we worked on included adapting smallholder farmers to climate change through agroforestry and other agroecological practices and the creation of multi-stakeholder roundtables of some of the major agricultural commodities. 

Lenny Martinez Head of Corporate Sustainability

Lenny: My introduction to agroforestry was much later than Irene’s! I did not grow up in a farming family but we were a family of food lovers in the South of France who wanted to buy their products from organic local producers.Going to the farmer's market is still the highlight of my week.

During my academic and professional career, I worked with NGOs such as Action contre la Faim, the Deutsche Umwelt Stiftung, Eating City and worked as a Member of Parliament on food policy issues and governance of land management. I joined Forest Finance in 2013 as a Project Manager to coordinate the development of agroforestry cocoa plantations in Peru. I initiated partnerships with research institutes to design these cocoa farms and an almond project in the South of France. This position helped me learn more about cocoa farming and introduced me to the various stakeholders of the chocolate industry. I developed a passion for cocoa and craft chocolate. 

What does it mean to be the Corporate Sustainability Manager at 12Tree and what does “Sustainability” mean to you?

Irene: The role evolves as the company grows, and everyone in the team specializes in different aspects. In the last couple of years, and because 12Tree is such a young company, my work has focused a lot on instituting the internal processes and governance structures within the company and the projects on the ground that allow us to incorporate all aspects of sustainability into the day-to-day decisions and standard operating procedures. Without this, sustainability is simply an afterthought. 

Another major part of my work has been setting up a robust monitoring and evaluation system that allows us to collect and analyze large amounts of information from the farms so that we can base our decisions on actual data. We created the Soil Health Task Force and the Biodiversity Task Force with my colleagues from the technical services team. These units will define the set of KPI’s that will be monitored on a regular basis in all our farms. 

As to your second question, to me the word “Sustainability” doesn’t mean much to be honest. At this point in time, when we have depleted our natural assets to such a degree, we should no longer just be sustaining the status quo. We need to regenerate what was lost. As the renowned regenerative farmer Gabe Brown always says, “why would I want to sustain a resource base that is already depleted?” 

Lenny: Irene, I completely agree with you on sustainability. The term is used by all kinds of actors and we no longer know what it means. The same is also currently happening to regenerative practices. It’s necessary to further define these terms. What we are trying to do as a team is help the farms practice agro-ecological management. The “sustainability team” is not separate from the rest of the company, it drives its core mission. 

I joined 12Tree at the very beginning of the adventure, in 2017. We were a very small team. As Irene said, our roles evolve. At the beginning, my role revolved around structuring indicators, collecting data and creating our ESG standards for the farms. Now, my role involves coordinating the impact activities and implementing projects with small producers. What is also particularly important to me is the communication with the buyers of our raw materials, understanding their needs and finding attractive opportunities for the 12Tree products. 

12Tree has a strong human-centered focus and Social Impact is essential to the 12Tree business model. What actions are you taking to improve the livelihoods of all workers, their families and communities? 

Escuela Costa Rica at Maquencal, Colombia

Lenny: About 80% of 12Tree Farms employees are from the regions where the farms are located. Employing locals and supporting local businesses through the farms (by improving infrastructure, for example) is central to our business. On 12Tree Farms, approximately 1,000 people are permanent employees. One of the main roles of 12Tree's operations and sustainability teams is to form strong relationships and loyalty with all employees. This is essential to the success of the projects. 

Another critical question for 12Tree is this: How can our farms build on local and traditional agricultural knowledge, and how can mechanized farms benefit from local producers?

With this in mind, we seek partnerships with small producers located near the plantations. The Sustainability Team leads these projects. For example, we have set up a pilot project called CarCao Forest with Heifer Guatemala. We would like to increase this type of collaboration on other farms and are in discussion with potential operational and financial partners for such projects.

We are currently working on setting up community gardens within the 12Tree plantations. It is crucial that employees and their families have access to quality food without needing to rely on imports. We also regularly organize events with neighboring communities. These include environmental awareness training (through the creation of signs in and around the plantation), psychological support for employees and their families (particularly in post-conflict regions of Colombia), waste recycling and waterway preservation.

What measuring tools (criteria and indicators) are used to define, monitor and assess the social impact of 12Tree’s agroforestry systems?

Irene: We have over 100 metrics to measure the social and environmental impact of our projects. Some of the metrics we use to measure the impact within and outside our farms include: the ratio of local to foreign workers, ratio of permanent to temporary workers, turnover rate, accident rate, average salary and benefits, salary gap between men and women, number of jobs provided to workers from the local communities, and number of smallholder farmers benefiting from knowledge exchanges, inputs or disintermediation. 

Lenny: The objective of this indicator framework is to continuously and holistically monitor how 12Tree Farms are managed. The aim is also to arrive at a more cohesive criteria for measuring and reporting sustainability on farms. These indicators will allow us to track the performance of each farm and compare farms in the same region (or country). It is also a path to understand the various impacts of our practices better and to adapt as necessary in order to mitigate the negative impacts and emphasize the positive ones. Every year, the resource use on the farms is measured to reduce or boost certain impacts, on the farm’s territory and in the larger community. Locally adapted and natural farming solutions that reduce chemical inputs and maximize diversity and yields should be scaled up!

What are some of the socio-economic challenges Latin America is facing today?

Irene: Land degradation compounded by climate change and the enduring problem of unequal land distribution. 

Lenny: I would say that there are two major issues at stake, social despair resulting from increasing inequalities and the ecological crisis. The countries in which 12Tree operates are particularly affected by the effects of climate change. This requires us to come up with concrete solutions to withstand these changes. 12Tree can inspire others to practice these farming methods.

COVID-19 has turned the social and economic fabric inside out. The virus has worsened the inequalities between rich and poor. Oxfam's latest report (The Inequality Virus) summarizes the current state of inequality. The virus mainly impacts the most vulnerable populations (indigenous people, women) and economic activities (small producers, rural populations whose livelihoods depend on tourism, workers in the informal sector, among others) which are less equipped to deal with the disruptions. For these populations, COVID-19 has caused much more than a momentary loss of income, it challenges their food and nutrition security in the long run. This is one of the reasons why we started working on projects to provide food for the staff and their families. 

On the other hand, Latin America is particularly affected by land concentration. Latin America displays the most unequal distribution of agricultural land, with the top 10 percent of landowners capturing up to 75 percent of agricultural land and the bottom 50 percent owning less than 2 percent. The largest 1 percent of farms in the world operate more than 70 percent of the world’s farmland; these farms form the core of production for the corporate food system. This, in my opinions, is a kind of moral obligation for 12Tree to support small scale producers and to improve the resilience of their farms to climate change and find more remunerative market opportunities for their products.

How are you addressing these climate change related challenges? 

Irene: Our agroforestry systems and regenerative practices sequester significant amounts of carbon and also allow us to adapt to extreme weather events, like floods and droughts which are becoming increasingly common due to climate change.

Lenny: Farms are experiencing the full impact of climate change: fluctuating temperatures and rainy seasons. Our agronomic approach is to increase the resilience of farms with methods that are close to nature, not against it. Growing only one crop is risky because of diseases, price fluctuations, etc. It is hence important to support multi-crops farms. 

Any Social Impact achievements by 12Tree in the last few years you are particularly proud of?

Local staff at Hacienda Guantupi, Ecuador

Irene: Yes, definitely! We work in rural areas decimated by poverty, insecurity and environmental vulnerability. Rural areas are key for the economic growth of the countries, for the development of their exports and for the employment of millions. But the lack of job opportunities and the threat of violence have pushed many to migrate to major cities and other countries. 

Our projects provide secure jobs and bring rural development to impoverished areas. This has a huge impact on the life of the workers, their families and the communities they live in. For example, in Guatemala the living income of a rural family is about $4,700 USD a year. We recently surveyed 120 families in 10 communities neighboring our farm in Guatemala. We found that on average, a family relying on subsistence farming only is earning $1,500 a year, whereas a family who has a family member working at our farm is earning, on average, $3,900 a year. That means that our project significantly reduces the income gap to achieve a decent standard of living.

A living income is defined as sufficient income to afford a decent standard of living for all household members – including a nutritious diet, clean water, decent housing, education, health care and other essential needs, plus a little extra for emergencies and savings.

Additionally, our smallholder program in Guatemala is designed to help reduce this income gap for the rural families who live in the communities nearby but don’t have a family member working at the farm, and rely only on subsistence farming. 

Lenny: I would add that one of the biggest benefits for locals is the job stability we provide. We provide a fixed salary, social benefits, paid vacations. Elements that seem quite normal in Europe, but which are not necessarily implemented in these rural areas. For example, in Maquencal the farm workers were employed by a local temp agency, with very limited rights. 12Tree brings stability, a strong commitment to work with local staff and to support local women/youth to run the farms.