International Development Grant

Promoting High-Value Cacao Agroforestry Systems

Project Number: CA-3-A034541002

Status: Closed

Country/Region:

Honduras 100.00%

Maximum Contribution: $7,000,000.00

Start Date: April 13, 2010

End Date: September 11, 2017

Duration: 7.4 years

Project Description

This project aims to help 2 500 small-scale hillside producers in 24 municipalities in northern Honduras. The Honduran Foundation for Agricultural Research (FHIA) promotes the replacement of low-value crops with high-value cacao agroforestry systems (rows of cacao trees interspersed with fruit and hardwood trees). This change diversifies production and provides small-scale producers with significantly increased income. The introduction of sustainable agriculture practices such as natural pest control and soil conservation measures helps to reverse environmental degradation and enables small-scale producers to access higher-value international markets. The project is a component of the Agriculture Value Chain Initiative. The goal of the Initiative is to enhance food security for poor rural Hondurans. It aims to increase the annual income of small-scale producers through improvements in productivity quality and diversity in the coffee and cacao sectors.

Progress & Results Achieved

Results achieved as of March 2016 include: (1) the project strongly impacted the cocoa sector in Honduras both in terms of production and quality. The total of 3 707 hectares now under production of which 2 659 hectares have been newly planted and 1 048 hectares have been rehabilitated through the project which represents more than 75% of the total cacao surface in Honduras. This year FHIA won the prestigious International Cocoa Awards in recognition of the high quality cocoa it produces; (2) 3 453 families (an increase of 348 compared to 2015) were supported (target of 2 500 families) through the rehabilitation of 1 048 hectares (compared to a 780 hectare target) of cacao-based agro-forestry land which had been abandoned due to floods and infestation by a fungus and 2 659 hectares of new cacao plantations established in agro-forestry systems including high-value fruit and timber trees; (3) a total of 1 657 agro-forestry training workshops (including gender equality components) were given to more than 3 453 families; (4) the project has planted a cumulative of 259 353 timber trees within 818.19 hectares; (5) support was provided to a formal network of women producers working in the cacao sector and significant progress was made in promoting gender equality; (6) the Network of Women Chocolate-Makers (REDMUCH) was established with 200 female producers and processors. The REDMUCH is now a space for women’s expertise in cacao handling and processing leadership and cacao tasting and supports their participation in innovative transformation activities for cacao and other agricultural products; (7) the sale of products (cacao organic fertilizer wood etc.) generated nearly CAN $2.6M for beneficiaries. (8) the project also led to the creation of 318 permanent jobs in various cacao processing activities; and (9) eight of the project's cooperatives are now selling their cacao on the international market though work remains to be done to support other producers i

Key Information

Executing Agency:
Honduran Foundation of Agricultural Research

Reporting Organization:
Global Affairs Canada

Program:
NGM Americas

Last Modified:
September 19, 2025

Development Classifications

DAC Sector:

Agricultural inputs 10%
Agricultural extension 50%
Agricultural education/training 20%
Plant and post-harvest protection and pest control 20%

Aid Type: Project-type interventions

Collaboration: Bilateral

Finance Type: Aid grant excluding debt reorganisation

Selection Mechanism:
Pre-APP

Policy Markers
Level 1 Gender equality
Level 2 Environmental sustainability (cross-cutting)
Level 1 Participatory development and good governance
Level 1 Biodiversity
Level 1 Climate change mitigation
Major Funding (>$1M)
Budget Breakdown
2010-04-01 to 2011-03-31 $7,000,000 CAD
Geographic Information
250
Project Number: CA-3-A034541002