MILAN – It’s no secret that there are a number of challenges confronting smallholder coffee growers around the world. Firstly, climate change is reducing the amount of land suitable for growing arabica coffee. Some researchers have suggested that as a result, optimum growing altitudes in Nicaragua, for example, will increase from 1,000 m.a.s.l. to 1,200 m.a.s.l. by 2050. Meanwhile, low coffee prices continue to affect the economic viability of coffee farming in many countries.
If these trends continue, coffee drinkers will have access to a much less diverse range of flavours in their cup, and smallholder farmers will have fewer ways to provide for their families. A number of these problems could be addressed by planting high-yield, disease-resistant coffee varieties that offer greater resilience to climate change.
But simple solutions such as these are not always effective. Firstly, smallholder producers are often unable to access affordable credit to pay for these new varieties. And even if they do, they often face the possibility of selling their crop at prices that do not cover their costs.
However, a new model being trialled in Nicaragua offers smallholder farmers the chance to build an economically sustainable livelihood, while also building resilience to climate change and strengthening local ecosystems. To find out just how this is possible, I spoke to stakeholders involved with this trial.
Cirad: A collaborative approach to helping smallholder farmers plant coffee
CIRAD are testing a prototype planting model in Nicaragua. This trial offers a new way for farmers to plant coffee in a financially and environmentally sustainable manner.
Benoit Bertrand is Research Director at CIRAD and one of the promoters of the concept. He says: “In the context of the falling real prices of coffee, forest loss, land degradation, and various competing certification systems for social and environmental problems, this trial offers a new way for farmers to plant coffee.”
At its core, the “coffee agroforestry business-driven clusters” (CaFC) model from CIRAD is straightforward. It is a new organisational model that fosters social and environmental innovation through farm renovation.
Firstly, outside investors loan smallholder farmers the money they need to replant coffee trees on their fields.
These loans are repaid with the smallholders’ first three full harvests. However, in the meantime, smallholder farmers are paid a modest, yet dependable, maintenance salary. This incentivises careful cultivation to produce coffees with desirable cup profiles.
Behind this arrangement, the model also needs a commitment from designated roasters to buy these coffees every year at above-market price. In exchange, they receive quality coffee, and are able to use their socially and environmentally sustainable sourcing practices as part of their marketing.
Furthermore, the model also brings in agronomy experts who guide the farmers to use agroforestry techniques. This empowers them to boost their income, minimise the adverse effects of climate change on their harvests, and support the local ecosystem.
Dr Jean-Yves Duriaux Chavarría is the Project Coordinator for Our Coffee at Cornell University. “It’s a great deal,” he tells me. “The farmers end up being way better off than your average coffee farmer.”
The CaFC model from CIRAD is not a one-size-fits-all approach, however. For example, certain varieties of coffee plants work better in some regions compared to others, and a monthly maintenance stipend in exchange for three full harvests might not suit every farmer.
For those producers that it does work for, however, this model unites agronomy experts, roasters, producers, and NGOs to maximise the long-term profit potential for smallholder farmers. It supports farmers who need to replant with agronomic best practices, affordable inward investment, and a reliable commitment from roasters.
The Trial: Replanting in Northern Nicaragua
Benoit Bertrand is one of the The trial taking place in Nicaragua is illustrating how the CaFC model benefits smallholder farmers. Many of the smallholders in the region own small parcels of land up near the Bosawas Reserve, in the Jinotega region.
Because incomes are so low in this area, coffee isn’t a priority. Instead, the land is used for growing cash crops, such as beans and maize, and they replant with “slash and burn” techniques. Unfortunately, this cultivation technique is harming the Bosawas Reserve.
Farmers also often grow nitrogen-fixing trees called “guabas”, which grow seeds in “bean-like” pods. These seeds are covered with an edible sweet white powder. As well as providing crop diversification, the guabas trees also provide coffee plants with shade, protecting them against harsh direct sunlight.
The CaFC model, funded by ECOM, Moringa Partnership, and Fundacion NicaFrance, is providing a solution. Firstly, as outlined above, these smallholder farmers are offered loans to pay for the cost of coffee planting. After that, these smallholders are paid a monthly salary to cultivate the coffee and guarantee desired cup qualities for the roaster. They pay back the replanting loan by giving away the proceeds from their first three years of harvests.
In this trial, rather than using legume trees, smallholders are instead getting their shade cover from native, precious hardwood trees, which grow slowly. Once fully-grown (after around 20 years) the timber from a single tree can then be sold for as much as US $500. Edgardo Alpizar is Head of Agronomy in Nicaragua for ECOM Trading. He says: “At the end of the coffee cycle, smallholder farmers can get US $25,000, maybe US $30,000 per hectare [from selling these trees].”
In addition, this model being pioneered in Nicaragua comes with training that teaches smallholder farmers how to produce high quality, sustainable coffee. The arabica trees being used in the Nicaragua CaFC trial are actually grafted onto the roots of robusta plants. This benefits the plant, as robusta roots retain more water and nutrients from the soil, and are more resistant to pests, such as nematodes (a type of parasitic roundworm).
The smallholder farmers in the Rancho Grande trial will soon stop offering up their three years of harvests to pay back the replanting costs. After this point, smallholders will own the entirety of their crop. They will be able to sell their coffee wherever they want, to whoever they want.
