Despite its excellent climatic conditions to produce high-quality cacao, Bolivia does not have a well-developed cacao-processing industry. Its cacao production is decreasing, farmers are facing problems with diseases and pests and the quality of the fermented beans is not stable. This project aims to transform the Bolivian cacao industry by introducing a centralised cacao processing plant, resulting in high quality, organic- certified fermented cacao beans for the international specialty market. Further, it will train the farmers in good agricultural cacao practices and stimulate the extension of the Bolivian acreage of cacao growing areas by introducing seedlings of resistant varieties to at least 150 farmers. Farmers in the Palos Blancos region will benefit not only through their organic certification, but will receive also a premium to local market prices. The project will be implemented by the American company Whitmore Family Enterprises, LLC, DBA Taza Chocolate, a producer of artisanally crafted stone-ground chocolate bars and the Bolivian company Industrias Valverde S.A. (Invalsa), a sourcing company of coffee and cacao.Corporate Social Responsibility (CSR)All cacao farmers and the cacao processing plant will be certified organic, guaranteeing environmental care by the project partners. The company will ascertain regularly that the farmers will not employ children in the cacao production and include this also in the contracts. It will ensure that at least 50% of the trained farmers supplying cacao will be women. Farmers will receive a premium of 500 USD above New York Board of Trade price. All farmers and employees will also be able to purchase agricultural supplies, groceries and other goods at Invalsa's "warehouse club", offering wholesale prices and credit based on paychecks or cacao purchases. This as part of the package to stimulate farmers to continue supplying the cacao to Invalsa, also after being trained, etc. Farmers will also benefit from the pre-finance capital that Invalsa will make available to the cooperative CIAAB, in order to ensure that farmers will be paid on the spot.Project employees will be paid salaries of at least 37% above the minimum wage in Bolivia, unskilled production workers will receive 70% above the minimum wages. The general manager shall be provided with housing at the project site location. The company will provide good and safe working conditions and fringe benefits.Impact• Employment and working conditionsBesides the salaries which are at least 37% above the minimum wages in Bolivia, the company provides good and safe working conditions. Fringe benefits include all legally prescribed benefits including social security, paid holidays, overtime payments, annual premium of 1.5 monthly salary, pension fund, insurance against occupational accidents, illnesses, incapacity and death, unemployment indemnity, right to associate with trade union. All staff will be intensively trained.• Innovation/Transfer of knowledgeThe project is new with regard to the product (better and controlled quality fermented and dried cacao beans), production method (new centralised fermentation technique), sectoral effect (increasing and improving the quality of cacao production), logistics (joint venture will collect unfermented, wet cacao beans from the farmers, make logistics extremely important as fermentation starts immediately after harvesting), organisation (direct trade premium and making the coop responsible for trainings of their members).• Chain effectsThe project will start with 150 farmers, members of the CIAAB cooperative. They will benefit with trainings and technical advice, with good quality cacao seedlings, guaranteed market access, prefinance capital, access to whole sales priced food products and premium cacao prices on contract basis. Also, the outgrowers will receive the same price for the cacao as currently, however without having to invest time in fermentation and drying. Also, the risk for the processing is with the company. At the end of the project the company will already work with 250 farmers, which will grow to at least 300 farmers in the two years after the project.The project will not have an impact on local consumers.• Impact on the sectorThe project will not have a direct impact on other parties in the sector.• EnvironmentThe project will work only with organic-certified farmers and also certify its processing plant. By adding value on the forest where the farmers are producing their cacao, it is more likely that the forest canopy will be maintained instead of growing monocultures.• Position of womenAs the company will assure that at least 50% of the trained contract farmers will be women. Also, 60% of the medium- and high-level staff will be women.

To start a centralised organic cacao processing facility in the Palos Blancos region, with a fermentation plant for high quality, dried cacao, while at the same time increasing cacao production in the region with 700 ha per year.