USAID Launches USD 8.2 Million Coffee and Cacao Agroforestry Project in Indonesia

Jun 2023

The United States Agency for International Development (USAID) has launched a project to promote sustainable cocoa and coffee production in Indonesia in partnership with Olam Food Ingredients (ofi), Rikolto, Hershey’s, and the Government of Indonesia.

The Landscape Approach to Sustainable and Climate Change Resilient Cocoa and Coffee Agroforestry (LASCARCOCO) is a joint investment of USD 8.2 million to improve environmental sustainability in cocoa and coffee production, while improving the welfare of rural communities through increased market access and strengthened resilience to climate change.

LASCARCOCO will train 6,500 cocoa and coffee farmers in North Sumatra, South Sulawesi, and East Nusa Tenggara in sustainable agroforestry practices, targeting districts where production has declined in recent years due to the effects of climate change as well as tree aging, pest and disease outbreaks, and soil fertility decline.

LASCARCOCO will work towards improving sustainable livelihoods through training in good agricultural practices and climate-smart agroforestry, where cocoa and coffee are grown alongside other income-generating crops. The project will also promote climate-friendly landscape management to enhance smallholders’ and local communities’ awareness, capacity, and involvement in climate change adaptation.

The LASCARCOCO partnership will create transparent and traceable supply chains for farmers registered with Olam’s Farmer Information System (OFIS) application, providing complete visibility of the environmental and social credentials of the cocoa and coffee produced under the project.  Rikolto will support LASCARCOCO through community engagement work with cocoa farmer communities in North Sumatra, South Sulawesi, and East Nusa Tenggara.  The project aims to help farmers increase their yields while conserving 14,000 hectares of watershed and buffer vegetation by 2025.  Cocoa butter produced through this partnership will be purchased and used by Hershey’s to produce its chocolate products.

(Source: USAID)

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