14.06.2022

Developing a policy in palm oil and cocoa production in Peru

Kakaofrucht
Cocoa from the San Pedro region in Peru.

With the support of the IKI, sustainable palm oil production and cocoa is on the national agenda in Peru.

The organisation Proforest has been working with national and local government and stakeholders in Peru to advance policies that support sustainable agricultural production. With support of the International Climate Initiative (IKI), Proforest is working on the development of a policy instrument for the sustainable production of palm oil, and is drafting a roadmap of public investment for the implementation of the cocoa national plan.

Policy for sustainable palm oil production

Menschen in Kakao-Plantage
The team of the IKI project walking through a plantation in the San Pedro region, Peru.

The national palm oil policy will cover the objectives, activities and actors required to transform the existing traditional production system into a sustainable one, including incentives and tools to support the process. The Ministry of Agrarian Development and Irrigation (MADI) targets to finish the policy by the end of 2022 and pass it into law.

Proforest is part of a technical working group chaired by MADI (with several departments involved), the national palm organisation, private sector companies and public-private coalitions, UNDP Peru and other international NGOs such as the Tropical Forest Alliance and Solidaridad.

After writing a baseline document in 2021, Proforest has been coordinating the technical contributions at national and regional meetings, with technical initiatives in four regions (Ucayali, San Martín, Loreto and Huánuco) and will be an external technical advisor to the policy team.

Once the policy instrument has been completed, Proforest will continue to support the government of Peru with the technical implementation process, through the IKI programme. This will involve training courses, including RSPO, HCV and HCS, traceability pilots in field, as well as exchanges and forums for stakeholders to participate, share and learn from the implementation process.

National plan for cocoa

Kakaotrocknung
Cocoa drying in the village in the San Pedro region, Peru.

Peru is the world’s ninth largest cocoa producer and the largest organic cocoa producer, exporting 60-70% of the product. A multi-stakeholder group including the public sector, private sector and civil society developed Peru’s National Plan for Cocoa (NPC) 2022-2030. The plan aims to increase exports, including a designation of origin certification, and expand the national market.

Proforest is supporting the government in outlining a roadmap of investment areas, actors and activities to be implemented in the next 3 to 5 years as part of the rollout of the plan. In particular, they have explored how to increase the competitive supply of Peru’s cocoa in order to increase export and other channels to improve participation in and access to international markets. This has involved working with producers, foreign trade representatives, the Office of the Chancellor, the Peruvian Association of Cacao Producers (APPCACAO), the export association (ADEX Peru) and several collaborative initiatives.

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