Deforestation-free supply chains: Agroforestry systems for smallholders in cocoa cultivation

The cultivation of fine flavoured cocoa for export is one of the most important sources of income for small producers in Ecuador. However, not all smallholder cooperatives have adequate traceability systems or specialised knowledge of the EU Regulation on Deforestation Free Products (EUDR). This could lead to a loss of preferential access to the European market. The project contributes to the conservation of areas of high biodiversity value and to the creation and safeguarding of income for smallholder families. To this end, capacities are being built in four cooperatives to fulfil the requirements of the new regulation and to consolidate trade relations with buyers in the EU. In addition, agroforestry systems are being promoted and a system for vegetation and traceability is being developed. An appropriate multiplier effect is ensured through the integration of the project into the provincial coordination bodies for a sustainable cocoa supply chain.

Project data

Countries: Ecuador
IKI funding: 633,599.99 €
Duration: 11/2024 till 11/2027
Status: open
Implementing organisation: International Rural Development Service e.V. (ILD)
Implementing Partner: Ecuadorian Populorum Progressio Fund - FEPP

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State of implementation/results

The project has conducted comprehensive assessments of producer organizations to identify gaps in compliance with the EU Deforestation Regulation (EUDR). Based on these assessments, tailored capacity-building and training plans are being developed to strengthen farmer organizations and align them with international sustainability standards.

In Esmeraldas, a mother garden has been established with 25% progress. In the coming months, species registration and traceability systems will be introduced. In Manabí, key farms are being visited to identify the most suitable species in terms of productivity, pest and disease resistance, and adaptation to local climate and soil conditions.
A new nursery in Mono Manso (Esmeraldas) has a capacity of 20,000 plants (60% cacao, 20% timber, 10% fruit, 10% other species). To reduce logistical barriers for dispersed farms, an additional module with a capacity of 10,000 plants is being established in Muisne.
In Manabí, the Asociación San Plácido provided land for a nursery serving three local cooperatives (San Plácido, Gaspar, Y de Cucuy). A second nursery at CAPAMC in Manga del Cura has been delayed due to local security incidents; activities have been rescheduled to ensure safe implementation.

The project launch took place in Quito with broad participation from ILD Germany, the German Embassy, GIZ, Cacao Bio Andino, CESA, the Ministry of Agriculture, and the six partner producer organizations (APROCAM, ASOPROAMATIF, Y de Cucuy, San Plácido, Gaspar, CAPAMC), as well as other relevant institutions. The event increased the project’s visibility and laid the foundation for strong inter-institutional cooperation.

Within the Asociación Y de Cucuy, a technical coordination group was established, bringing together experts from GIZ, Cacao Bio Andino, and FEPP-ILD. This platform strengthens synergies among projects, prevents duplication, and increases impact for cocoa farmers and their communities.

With nurseries, clonal gardens, and training plans, important foundations are being laid for deforestation-free cocoa supply chains that strengthen smallholder resilience, conserve biodiversity, and secure rural livelihoods in Ecuador.

Latest Update:
12/2025