Global Sustainability Impacts - Colombia - Juan Carlos Botero, Mesa de Ganadar’a Sostenible de Colombia (Colombia), from the 2018 Global Roundtable for Sustainable Beef (GRSB), October 9 - 12, 2018, Kilkenny, Ireland.
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4. BEEF PRODUCTION
NATIONAL
STATE
FARM
INTERNATIONAL
DAIRY PRODUCTION
ACTORS
• Producers
• Auctions
• Slaughters plants
ACTORS
• Producers
• Dairy transport
• Dairy plants
Colombian program registered November 2015 as NAMA Registry
(Reduce 20% GEI emissions up to 2.030 starting 2015 base line)
NAMA’S FOCUS
5. NAMA’S ACTIONS FOR LIVESTOCK
PROPOSALS FOR PRODUCERS
1. Silvopastoral, intensive and conventional systems.
2. Eco efficient practices for conventional productions.
3. Pasture Improvement
4. Conserve and restore natural areas with livestock production articulating with ecosystemic areas.
PROPOSALS FOR PRODUCERS, AUCTIONS AND SLAUGHTERS PLANTS
5. Efficient use of water and wastes guided to use bio inputs (recycle)
6. Traceability to identify animals that come from rainforest fields in order to diminish deforestation.
7. Introduce clean energy production.
8. Use of clean energy for dairy and beef transportation and for its gathering.
PROPOSALS FOR BEEF AND DAIRY TRANSPORT
9. Elaboró: Secretario Técnico CNCCB
CATTLE HERD:
26,3 million
in 30,4 million hct
Breeding
Cattle:
10,2 million
Bulls:
4,6 million
Double
purpose:
10,1 million
Milking Cows:
1,4 million
Bulls: 9 million
Cows: 17,3
million
COLOMBIAN LIVESTOCK 2005-2018
11. Fuente: ICA, Subgerencia de Protección Fronteriza. Elaboró Secretario Técnico CNCCB
COLOMBIAN BEEF EXPORTS
2017
AMOUNT (Kg.) AMOUNT (Kg.) AMOUNT (Kg.)
CHINA 27.003
CHILE 195.850
UNITED ARABE EMIRATES 24.108 243.608
EGYPT - 108.096
CONGO 25.482 26.250
CURAZAO 1.180.724 466.237 206.792
JORDANIA 2.237.518 4.905.363 980.792
LIBIA 280.756 474.486
LEBANON 501.015 3.636.894 1.345.661
HONG KONG 530.875 1.117.553 917.354
IRAK 77.929 141.979
PERU 262.729 265.799
RUSIA 4.325.973 3.699.671 8.685.653
VIETNAM 135.029 978.504 867.625
TOTAL KG 9.703.289 16.067.793 13.247.485
COLOMBIA (JANUARY 1/2016 – AUGUST 30/2018)
DESTINATION
2016 2018
12.
13. Benefits for 4.000 small and medium sized
producers in 87 municipalities (12 states)
Friendly production systems with
environment
Increase connectivity and provide
environmental services
Reduce poverty and increase productivity
Mitigation and adaptation to climate change
RESULTS
14. ORGANIZE MORE THAN 600 EVENTS, WITH
AROUND 10.000 PEOPLE
WITH THE COMMUNITY WE WERE ABLE TO
…
15. CORTOLIMA
CORPOGUAJIRA
REVERDEC
ACHIEVEMENTS
Strategic alliances to provide trees with:
50 private vivariums
SENA
CVC
20. USD $576
income x
hct/year in
farm with
SSP.
Increase 23% the average
load in field with SSP. Vs.
traditional pastures
21.
22. COLOMBIAN AMAZON VISION PROGRAM
GGGI, FINAGRO and Earth Innovation Institute have been developed a financial instrument with
blended resources coming from a government institution (FINAGRO), plus Grant Resources from
Amazon Vision Program.
First Floor Financial institution
Executing Agency
Farmers
Credit
Guarantee
Agricultural Fund
80% Credit Guarantee
20%Credit
Guarantee Account
Interest rate
incentive Account
Release land
incentive
$
Technical
Assistance
$
Trust
$
$
$
$
$
$ $ $
$
Potential Off Takers
$
Milk
Beef
Monitors Forest Conservation, Areas
Released for Restauration and
Regional Planning
Financial Instrument Design
Cooperation/
Gvmt $
23. AMAZON VISION PROGRAM - JDI
At the 2009 Conference of United Nations Framework Convention on Climate Change (UNFCCC),
Colombia announced an ambitious goal to achieve zero net deforestation in the Colombian Amazon
region by 2020 and nationwide by 2030. In order to achieve this goal, the national government is
currently developing two comprehensive programs called "Amazon Vision“, “Joint Declaration of Intent”.
• Livestock is the most important use for land stripped of its forest covered in the
Amazon and nationwide (35-38´has), therefore, grasslands occupy approximately 70%
of said deforested land. Transforming this dominant way of life to sustainable practices,
is one of the most critical challenges for the Amazon Vision and JDI.
• The governments of the United Kingdom, Norway and Germany seek to support
Colombia in achieving its goal of zero net deforestation.
• New financial instruments have been identified among the strategies to contribute to
achieve Amazon Vision’s and JDI goals.
24. CHALLENGES
LIVESTOCK ACTIVITY IN FIGURES
• 37,4 million hectares in pastures under
livestock activity = 30% of the national
territory (DANE, 2017)
• 22,6 million of cattle. Load of approx. 0.6
heads per hectare (National Livestock
Fund, Fedegan, 2012)
• 550 thousand farms (approx.)
• 28% of rural employment (Fedegan 2016)
• 3.5% of the National GDP (Fedegan 2016)
MAIN CHALLENGES
• Inefficient land use
• 20 million hectares in conflict of use
(UPRA, 2014)
• 18.48% of the GHG emissions generated in
the country;
• 48.51% of Greenhouse Gas Emissions from
the agricultural sector (Second National
Communication, 2010)
• Livestock as a speculative vehicle on land
25. CHALLENGE IN LAND USE
High pressure towards deforestation as it is a colonization frontier
Livestock as the main economic activity
Few incentives for sustainable use of natural forest
Lack of capital to invest in sustainable systems (agroforestry, silvopastoral
systems, etc.)
Lack of formality in land tenure
Lack of technical assistance for sustainable agricultural systems
26. ITPS FINANCIAL INSTRUMENT
Objective
Leverage a nationwide strategy of gradual reconversion of pastures of low livestock
productivity in areas of high ecosystem value, towards sustainable forest landscapes with
efficient production systems.
Rediscount
Institution
FINAGRO (Second-tier, mixed economy credit entity of the national order linked to the Ministry of Agriculture and
Rural Development).
First Floor
Bank
Banco Agrario in Amazon Pilot. Can be implemented with other private banks in Colombia: Bancolombia,
Davivienda, others.
Potential
Market
Small Producers (less than USD$60K in capital). Potential in 10 year is 5%of total livestock area, about15.000
producers
Size
Pilot Amazon Vision: 100 small producers, 8.000 Ha, 2.400 Ha with conservation agreements, 2.400 Ha restored,
total cost USD$1.2 million.
Pilots Orinoquia and Antioquia:300 producers,15.000Ha,USD$3´.Scale up 5% area:1´75 million Ha, USD$300 million.
Zero
Deforestation
Commitment
Each producer can liberate pasture areas for restoration and receive an incentive of USD$170 per Ha, up to 25% of
the total amount of credit, payed to capital in two payments (year 1.5 and year 3). Restored areas are defined with
technical assistance according to landscape and farm planning. Monitoring system to design (IDEAM)
Land
Restoration
All beneficiaries require to sign a zero deforestation agreement before credit approval, which conditions the
benefits provided by the ITPS, monitored every year.
27. ITPS FINANCIAL INSTRUMENT
Loan Amount Up to COP 20 Million (USD 7.000)
Interest Rate
Grace Period
Term
Incentives
Rediscount interest rate: DTF -E.A.. ; Final Interest Rate to the client: DTF (about 6.5%).
Destination Electric fence/solar panels-division of paddocks, livestock aqueduct, mixed fodder bank, live fence, seeds,
fertilizer, other supplies
Up to 7 years
1 year
Principal
Payments
Tailor made (according to financial planning with each producer), monthly payments.
Incentives, coming from Amazon Vision, conditioned to productive restoration and liberation of areas for
forest regeneration
• Principal’s Payment reduction: COP 500.000 (USD 150) per released Ha, up to 25% of total principal
• Interest Rate reduction: from DTF + 5,5% to DTF (about 6%)
Guarantee 100% by FAG (Agricultural Guarantee Fund – FAG serves to guarantee credits and microcredits under
FINAGRO’s conditions)
Geographical
scope
First Pilot project: Caquetá and Guaviare departments (Amazon). Scalable to 5% of area in 10 years
(Caribean, Central, Orinoquia): 1.75´ ha.
28. • Approval for pilot implementation in Amazon región (August, 2018).
• Scale up in Antioquia, Orinoquia and other priority regions: Fund raising and
implementation
• Livestock Sustainable Reconversion Program under formulation (CIAT):
Opportunity to scale up.
• Adapt to medium and large sized producers.
• Design of Agroforestry and Forestry: transformation of pasture areas into forests-
complementarity.
CURRENT STATUS AND NEXT STEPS