Jan 28, 2026
PRONATEC visits cocoa producers in Peru
Nicolo Rieben, Head Cocoa Beans at PRONATEC, and Mary Wiesendanger from Order Processing visited our partner cooperatives in November and found out how the community can make a difference for producers.
PRONATEC on the road along the Peruvian cocoa belt …
… visiting our long-standing partner cooperatives
Nicolo, you visited several of our longstanding partner cooperatives in Peru. What were your impressions from the on-site discussions?
We repeatedly saw the crucial role cooperatives play in farmers’ daily lives on our trip. Cooperatives are much more than just trade or sales organisations: they build reliable structures, offer professional guidance, organise processes and provide social support. Many smallholders emphasised that without support from cooperatives, they would find it difficult to meet the growing demands of the new EU organic regulation or the EU regulation on deforestation-free supply chains (EUDR).
The extent to which the 2024 cocoa crisis and resulting price fluctuations are continuing to affect the sector was also evident. High global market prices are acting as a short-term incentive for sales outside of cooperatives. Although this means a quick profit for individuals, it undermines the stability of the community. Several cooperative representatives stressed that the organisation bears the full risk – potentially threatening its very existence – when members do not deliver their harvest to the cooperative.
Staying on the topic of the positive impact of cooperatives on smallholders, could you provide some specific examples?
The positive impact of cooperatives extends across all areas of work, but they provide administrative guidance in particular. They offer practical assistance and guidance to members in an increasingly complex environment. An ACOPAGRO representative summed it up perfectly: “Without our support, smallholders are overwhelmed by complexity.”
The importance of the fair trade premiums and their collective use was also evident during every visit. The cooperatives have clearly structured premium investment catalogues, which show how funding flows into social projects, infrastructure, training and collective offerings. The related community spirit is particularly noticeable at smaller cooperatives such as El Quinacho. Almost the entire village attends the cooperative’s annual party in Sivia. We saw firsthand the extent to which community, mutual support and identification impact the lives of the villagers.
Moises, who is now 75 and has been a member of El Quinacho for more than five decades, is a prime example. For him, it was clear that “The cooperative has strengthened our families, provided opportunities for young people and maintained belief in our community.” This kind of statement shows that the fair trade model has an impact beyond commercial aspects and brings long-term social stability.
A strong sense of community is tangible at El Quinacho’s cooperative party.
The Fairtrade model improves the livelihoods of smallholder farming families.
You mentioned the 2024 cocoa crisis and high prices. What associated operational challenges stood out for you?
Financing the harvest is and will continue to be a key issue for everyone involved. The cooperatives sometimes have to pre-finance large sums in the current market environment so that they can buy and pay for their members’ harvests immediately. This is a tremendous strain, especially when global market prices are very high and volatile.
As a longstanding, reliable collaborator, PRONATEC plays a vital role here. We were able to help our key partners avoid liquidity shortfalls through targeted prefinancing for this year’s main harvest. Our purchase guarantees also provide security in financial planning. Many smallholders emphasised the importance of knowing that the cooperative can definitely place their harvest and is not facing short-term financial pressure.
And what about volatility? What impact are fluctuating global market prices having on the cooperatives?
The high global market price volatility is a major risk factor for the cooperatives. Purchasing cocoa at too high a price and then having to sell it at considerably lower market prices means a considerable potential loss. This is difficult to hedge at the cooperative level, and it raises fundamental questions about fair trade.
As a buyer, PRONATEC is also exposed to these market forces. We are now using a hedging model to counter these risks. We are also sceptical of the declining importance of cost-based pricing in the current market environment – when prices fall, the risk shifts heavily to the cooperatives. A degree of concern was evident here.
This makes one point we repeatedly emphasised in Peru all the more important: demand for organic cocoa remains strong. Organic and fair trade cocoa sells at a premium to conventional goods, even when global market prices are falling. This provides the cooperatives with a degree of planning security and acts as an important incentive to continue with the chosen strategy.
The cocoa is fermented in boxes …
… and dried in the sun.
Demand for organic and Fair Trade cocoa remains high.
Besides price volatility and market forces, what other challenges are the cooperatives facing?
Regulations continue to be a dominant issue, particularly the new EU organic regulation and the EUDR. Implementing these is a huge endeavour for all cooperatives. So we were really pleased to see that the majority of our partner cooperatives are already making great progress: the new organic certifications have been obtained and all georeferencing and polygon mapping for the EUDR have been completed. PRONATEC was closely involved and actively supported the cooperatives – not as a buyer, but through technical support and the knowledge of our experts, who provided guidance throughout the process.
We faced an additional local challenge in the San Martín region: there is an increasing risk of neighbouring conventional rice-growing areas to cross-contaminate organic plots due to the use of new drone spraying technology. I was impressed by how ACOPAGRO is actively tackling this risk. For example, the cooperative is using tall trees to create natural buffer zones and has taken high-risk areas out of the supply chain. I believe this targeted approach is an important indicator for the stability of organic cocoa production in the region.
Turning away from structural matters: what stood out for you in terms of work on the plots?
The quality of the agroforestry system. On the plots we visited, you could immediately see how much had already been implemented over the last few years. The land was carefully tended, with well-structured shade trees, a wide variety of companion crops and young cocoa plants. This type of agroforestry makes the entire cultivated area more resistant – to climate changes as well as diseases.
Irrigation is also becoming an increasingly important issue in San Martín. Longer, more frequent dry spells are creating new challenges for smallholders, meaning functional irrigation systems are crucial to secure and improve yields. ACOPAGRO is providing targeted support for its members here in implementing appropriate solutions with technical know-how. Farming couple Enemesio and Andrea have already notched up their first successes: since installing an irrigation system, their cocoa has been growing more evenly and they are less reliant on the weather. ACOPAGRO’s support meant they were able to stabilise their yields and extend their plot. Examples like this demonstrate the impact a strong organisational unit can have.
I was also impressed on our visit to the Helvetas project “Paisaje Sostenible de Cacao en la Región San Martín” (see info box). Their approach there combines biodiversity, climate resilience and creating additional income. The project, which is funded by the SECO via the Swiss Platform for Sustainable Cocoa (SWISSCO), works closely with cooperatives such as ACOPAGRO and strengthens both regional collaboration and implementation of regulatory requirements. The focus here is on higher productivity, protecting the forests, clear traceability and stable incomes for smallholder families.
One final question: what is the biggest insight you gained from this trip?
As a result of the trip, I firmly believe that smallholder cooperatives are the key to the future of organic cocoa in Peru. Without them, producers will be unable to meet the growing regulatory demands or cope with market fluctuations.
It also demonstrated once again the value of direct partnerships in times of uncertainty. Our longstanding collaboration with organisations like ACOPAGRO and El Quinacho builds trust and stability – both for smallholder families and for us. It makes it possible to react swiftly, provide targeted support and develop sustainable solutions together.
The ACOPAGRO smallholder cooperative in Peru
The El Quinacho smallholder cooperative in Peru
Helvetas project “Paisaje Sostenible de Cacao en la Región San Martín”
(sustainable cocoa landscape in the San Martín region)
Helvetas Peru has been implementing the three-year “Paisaje Sostenible de Cacao en la Región San Martín” project in San Martín, Peru’s main cocoa-growing region, since 2024. The SECO provides financial support for the project via the Swiss Platform for Sustainable Cocoa (SWISSCO). The aim is to promote sustainable cocoa landscapes and provide smallholders with professional support in switching to resilient agroforestry systems.
The project supports producers in using climate-adapted farming methods and implementing international standards such as the EU Regulation on deforestation-free supply chains (EUDR). The key focus areas include increasing productivity, achieving living incomes and establishing better traceability and transparency across the supply chain.
There is particular emphasis on the close collaboration between local cooperatives and regional authorities. Stakeholders from agriculture, the authorities and the private sector are connected via dialogue formats and shared platforms to effectively drive forward sustainable solutions.
Our partners in Peru
PRONATEC has always set great store by long-term partnerships in the countries of origin – our collaboration with the two Peruvian smallholder cooperatives ACOPAGRO and El Quinacho are perfect examples of this. We have been working closely with “Cooperativa Agraria Cacaotera ACOPAGRO Ltda” since it was founded in 1997, while “Cooperativa Agraria Cafetalera El Quinacho Ltda” has been one of our partner cooperatives since 2000.
