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KILKENNY,
IRELAND
OCTOBER 2018
46 PUBLIC – PRIVATE MEMBERS
46 PUBLIC – PRIVATE MEMBERS
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
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
COLOMBIAN REGIONAL ROUNDTABLES
Antioquia
La Guajira
Orinoquia
Caquetá
Eje Cafetero
y Norte del
valle
Córdoba -
Sucre
Magdalena
Medio
Fuente: FAO
LIVESTOCK
Fuente: ICA, 2018. Elaboró Secretario Técnico CNCCB
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
CABEZAS 22,622,965 22,540,251 23,169,365 23,048,045 22,666,751 22,399,618 22,593,283 22,850,647 22,689,420 23,475,022 26,367,814
22,622,965 22,540,251
23,169,365 23,048,045
22,666,751
22,399,618
22,593,283
22,850,647
22,689,420
23,475,022
26,367,814
20,000,000
21,000,000
22,000,000
23,000,000
24,000,000
25,000,000
26,000,000
27,000,000
AMOUNTOFANIMALS COLOMBIAN LIVESTOCK 2005-2018
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
Fuente: ICA, Subgerencia de Protección Fronteriza. Elaboró Secretario Técnico CNCCB
ANIMAL EXPORTS 2015 - 2018
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
 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
ORGANIZE MORE THAN 600 EVENTS, WITH
AROUND 10.000 PEOPLE
WITH THE COMMUNITY WE WERE ABLE TO
…
 CORTOLIMA
 CORPOGUAJIRA
 REVERDEC
ACHIEVEMENTS
Strategic alliances to provide trees with:
 50 private vivariums
 SENA
 CVC
PAYMENTS FOR ENVIRONMENTAL SERVICES
Foto: Archivo CIPAV
RURAL EXTENSION
Rural women empowerment
New producers
Generational relief
Decrease
18,5% the
production
cost with SSP
USD $576
income x
hct/year in
farm with
SSP.
Increase 23% the average
load in field with SSP. Vs.
traditional pastures
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 $
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.
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
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
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.
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.
• 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
(USD $ )
STATES #OPER VALUE #OPER VALUE #OPER VALUE #OPER VALUE
ANTIOQUIA 3.824 67.464.178$ 4.957 106.185.010$ 5.410 140.345.097$ 3.476 76.405.054$
BOGOTA D.E. 307 16.890.152$ 366 16.341.837$ 391 130.684.721$ 193 55.636.673$
CUNDINAMARCA 5.946 56.053.533$ 7.651 66.933.274$ 8.091 67.423.442$ 4.378 30.027.387$
BOYACA 8.560 33.443.456$ 11.208 46.893.985$ 12.562 52.600.427$ 6.462 27.724.117$
SANTANDER 3.457 35.879.480$ 3.915 31.958.467$ 4.237 31.266.438$ 2.480 24.541.418$
CORDOBA 1.289 30.269.325$ 1.730 44.621.044$ 1.776 33.492.049$ 970 19.718.635$
NARIÑO 5.003 16.799.317$ 5.541 19.957.653$ 6.887 27.609.832$ 3.657 15.141.315$
CASANARE 1.407 17.657.008$ 1.824 27.876.251$ 1.800 24.421.133$ 1.304 14.221.824$
VALLE 700 28.876.214$ 837 17.732.979$ 961 38.135.398$ 545 13.607.748$
CAQUETA 2.335 17.778.460$ 2.772 24.001.752$ 2.762 22.501.420$ 1.542 13.296.006$
META 1.210 16.404.409$ 1.831 24.509.704$ 1.780 23.053.876$ 1.098 11.558.774$
CALDAS 687 11.431.396$ 947 14.704.602$ 899 10.952.762$ 528 10.375.095$
BOLIVAR 1.535 10.833.688$ 1.797 16.986.097$ 2.118 20.918.279$ 1.043 9.861.705$
TOLIMA 1.834 12.132.363$ 2.188 14.444.656$ 2.218 26.201.747$ 1.210 9.519.491$
SUCRE 857 10.487.760$ 1.155 11.896.375$ 1.372 13.658.186$ 662 7.936.668$
CESAR 793 14.185.428$ 939 17.472.864$ 1.123 19.058.840$ 532 7.608.555$
MAGDALENA 996 10.819.103$ 1.260 15.179.948$ 1.532 15.790.468$ 595 7.210.141$
CAUCA 2.467 7.119.353$ 2.444 7.606.738$ 2.767 9.975.456$ 1.590 6.429.876$
NTE.SANTANDER 1.653 8.325.087$ 1.619 8.782.409$ 1.951 10.713.804$ 983 5.086.304$
ARAUCA 620 7.355.785$ 614 8.286.565$ 656 7.753.946$ 522 5.044.231$
HUILA 950 6.548.453$ 1.185 7.961.637$ 1.148 8.277.945$ 708 4.645.071$
ATLANTICO 177 16.059.457$ 273 6.146.807$ 381 14.172.196$ 121 3.174.236$
PUTUMAYO 439 2.218.400$ 627 3.668.316$ 819 4.412.771$ 498 3.031.622$
GUAVIARE 220 2.518.505$ 265 3.478.082$ 436 3.506.316$ 295 2.367.027$
RISARALDA 206 1.932.258$ 171 1.617.942$ 216 3.105.818$ 108 2.329.210$
QUINDIO 120 1.824.883$ 125 2.573.256$ 169 2.591.315$ 93 1.951.307$
CHOCO 105 714.616$ 166 1.763.286$ 198 1.624.180$ 143 1.113.387$
VICHADA 113 1.588.734$ 132 2.099.387$ 126 1.273.245$ 65 843.858$
GUAJIRA 56 1.103.176$ 97 1.128.636$ 171 1.646.575$ 34 547.455$
GUAINIA 2 3.333$ 1 5.000$ 8 92.667$ 2 34.667$
SAN ANDRES 1 4.167$ 2 24.167$ 9 6.578.239$ 5 21.067$
AMAZONAS 1 1.333$ 0 -$ 0 -$ 0 -$
VAUPES 1 2.857$ 0 -$ 0 -$ 0 -$
TOTAL 47.871 464.725.669$ 58.639 572.838.725$ 64.974 773.838.588$ 35.842 391.009.923$
LIVESTOCK LOANS
2015 2016 2017 JAN-JUL 2018
Cows
Retention
Credit Line
With
Subsidy
#
oper
No.
Units
LOAN
(USD $)
#
oper
No. Units
LOAN
(USD $)
#
oper
No. Units
LOAN
(USD $)
#
oper
No. Units
LOAN
(USD $)
# oper No. Units
LOAN
(USD $)
CORDOBA 3 179 113.333$ 63 10.997 5.165.686$ 33 3.561 2.178.333$ 15 1.221 700.333$ 114 15.958 8.157.686$
ANTIOQUIA 9 1.288 520.000$ 57 8.813 3.806.723$ 36 4.660 2.268.051$ 12 1.660 702.567$ 114 16.421 7.297.340$
CAQUETA 57 2.087 1.103.333$ 108 5.521 2.670.570$ 28 1.374 625.667$ 54 2.008 1.206.000$ 247 10.990 5.605.570$
CESAR 7 1.339 654.667$ 36 5.083 2.387.367$ 21 2.461 1.222.667$ 12 1.091 655.000$ 76 9.974 4.919.700$
SUCRE 2 17 9.333$ 39 4.806 2.321.533$ 24 2.299 1.198.667$ 14 1.216 534.400$ 79 8.338 4.063.933$
SANTANDER 5 283 148.333$ 35 5.534 1.735.000$ 30 2.867 1.591.400$ 12 791 499.787$ 82 9.475 3.974.521$
META 1 92 16.667$ 28 2.580 1.661.000$ 34 3.668 1.629.047$ 14 2.337 540.000$ 77 8.677 3.846.713$
CUNDINAMARCA 6 308 186.067$ 28 2.710 1.613.000$ 22 1.773 951.117$ 22 1.312 851.333$ 78 6.103 3.601.517$
CASANARE -$ 28 4.676 1.646.800$ 26 2.492 1.077.600$ 23 1.801 756.467$ 77 8.969 3.480.867$
MAGDALENA 2 224 124.583$ 26 4.473 1.739.310$ 22 2.030 1.051.333$ 7 658 361.333$ 57 7.385 3.276.560$
CALDAS 10 1.232 728.000$ 16 1.372 709.195$ 14 1.481 810.000$ 5 605 303.333$ 45 4.690 2.550.529$
HUILA 10 142 72.178$ 52 1.880 945.733$ 20 1.247 634.667$ 11 335 146.000$ 93 3.604 1.798.578$
ATLANTICO 4 681 450.000$ 12 1.588 827.333$ 4 450 273.333$ 1 150 100.000$ 21 2.869 1.650.667$
BOYACA 11 92 58.333$ 43 1.467 893.217$ 14 1.089 594.000$ 4 180 65.333$ 72 2.828 1.610.883$
TOLIMA 2 26 15.667$ 25 1.217 667.267$ 8 1.037 396.333$ 8 322 186.667$ 43 2.602 1.265.933$
BOLIVAR 2 228 146.458$ 10 1.378 755.333$ 5 330 201.667$ 1 18 3.000$ 18 1.954 1.106.458$
VALLE -$ 6 450 300.000$ 9 1.020 577.333$ 3 280 186.667$ 18 1.750 1.064.000$
ARAUCA -$ 8 285 190.000$ 9 627 369.333$ 6 230 115.707$ 23 1.142 675.040$
RISARALDA 1 125 83.333$ 2 172 114.667$ 4 500 260.000$ 3 210 140.000$ 10 1.007 598.000$
LA GUAJIRA -$ 3 605 96.667$ 5 268 178.333$ 1 100 26.667$ 9 973 301.667$
QUINDIO -$ 2 210 63.333$ 5 248 152.000$ 2 120 80.000$ 9 578 295.333$
GUAVIARE -$ 1 140 50.000$ 3 391 155.333$ 1 15 10.000$ 5 546 215.333$
VICHADA -$ 2 210 140.000$ -$ 1 100 33.333$ 3 310 173.333$
CHOCO -$ 1 50 33.333$ 2 165 83.333$ 1 75 50.000$ 4 290 166.667$
BOGOTA D.C -$ 1 87 33.333$ 1 250 53.333$ 1 100 66.667$ 3 437 153.333$
CAUCA -$ 4 229 139.000$ -$ 1 15 10.000$ 5 244 149.000$
NARINO -$ 18 211 140.166$ 1 13 8.667$ -$ 19 224 148.833$
PUTUMAYO -$ 2 31 13.333$ 6 229 104.333$ 2 20 7.333$ 10 280 125.000$
NTE. SANTANDER 1 66 22.000$ 1 32 17.067$ 1 43 23.333$ -$ 3 141 62.400$
Total 133 8.409 4.452.286$ 657 66.807 30.875.967$ 387 36.573 18.669.214$ 237 16.970 8.337.927$ 1.414 128.759 62.335.395$
STATE
2015 2016 2017 2018 TOTAL

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  • 2. 46 PUBLIC – PRIVATE MEMBERS
  • 3. 46 PUBLIC – PRIVATE MEMBERS
  • 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
  • 6. COLOMBIAN REGIONAL ROUNDTABLES Antioquia La Guajira Orinoquia Caquetá Eje Cafetero y Norte del valle Córdoba - Sucre Magdalena Medio
  • 8. Fuente: ICA, 2018. Elaboró Secretario Técnico CNCCB 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CABEZAS 22,622,965 22,540,251 23,169,365 23,048,045 22,666,751 22,399,618 22,593,283 22,850,647 22,689,420 23,475,022 26,367,814 22,622,965 22,540,251 23,169,365 23,048,045 22,666,751 22,399,618 22,593,283 22,850,647 22,689,420 23,475,022 26,367,814 20,000,000 21,000,000 22,000,000 23,000,000 24,000,000 25,000,000 26,000,000 27,000,000 AMOUNTOFANIMALS COLOMBIAN LIVESTOCK 2005-2018
  • 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
  • 10. Fuente: ICA, Subgerencia de Protección Fronteriza. Elaboró Secretario Técnico CNCCB ANIMAL EXPORTS 2015 - 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
  • 16.
  • 17. PAYMENTS FOR ENVIRONMENTAL SERVICES Foto: Archivo CIPAV
  • 18. RURAL EXTENSION Rural women empowerment New producers Generational relief
  • 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
  • 29. (USD $ ) STATES #OPER VALUE #OPER VALUE #OPER VALUE #OPER VALUE ANTIOQUIA 3.824 67.464.178$ 4.957 106.185.010$ 5.410 140.345.097$ 3.476 76.405.054$ BOGOTA D.E. 307 16.890.152$ 366 16.341.837$ 391 130.684.721$ 193 55.636.673$ CUNDINAMARCA 5.946 56.053.533$ 7.651 66.933.274$ 8.091 67.423.442$ 4.378 30.027.387$ BOYACA 8.560 33.443.456$ 11.208 46.893.985$ 12.562 52.600.427$ 6.462 27.724.117$ SANTANDER 3.457 35.879.480$ 3.915 31.958.467$ 4.237 31.266.438$ 2.480 24.541.418$ CORDOBA 1.289 30.269.325$ 1.730 44.621.044$ 1.776 33.492.049$ 970 19.718.635$ NARIÑO 5.003 16.799.317$ 5.541 19.957.653$ 6.887 27.609.832$ 3.657 15.141.315$ CASANARE 1.407 17.657.008$ 1.824 27.876.251$ 1.800 24.421.133$ 1.304 14.221.824$ VALLE 700 28.876.214$ 837 17.732.979$ 961 38.135.398$ 545 13.607.748$ CAQUETA 2.335 17.778.460$ 2.772 24.001.752$ 2.762 22.501.420$ 1.542 13.296.006$ META 1.210 16.404.409$ 1.831 24.509.704$ 1.780 23.053.876$ 1.098 11.558.774$ CALDAS 687 11.431.396$ 947 14.704.602$ 899 10.952.762$ 528 10.375.095$ BOLIVAR 1.535 10.833.688$ 1.797 16.986.097$ 2.118 20.918.279$ 1.043 9.861.705$ TOLIMA 1.834 12.132.363$ 2.188 14.444.656$ 2.218 26.201.747$ 1.210 9.519.491$ SUCRE 857 10.487.760$ 1.155 11.896.375$ 1.372 13.658.186$ 662 7.936.668$ CESAR 793 14.185.428$ 939 17.472.864$ 1.123 19.058.840$ 532 7.608.555$ MAGDALENA 996 10.819.103$ 1.260 15.179.948$ 1.532 15.790.468$ 595 7.210.141$ CAUCA 2.467 7.119.353$ 2.444 7.606.738$ 2.767 9.975.456$ 1.590 6.429.876$ NTE.SANTANDER 1.653 8.325.087$ 1.619 8.782.409$ 1.951 10.713.804$ 983 5.086.304$ ARAUCA 620 7.355.785$ 614 8.286.565$ 656 7.753.946$ 522 5.044.231$ HUILA 950 6.548.453$ 1.185 7.961.637$ 1.148 8.277.945$ 708 4.645.071$ ATLANTICO 177 16.059.457$ 273 6.146.807$ 381 14.172.196$ 121 3.174.236$ PUTUMAYO 439 2.218.400$ 627 3.668.316$ 819 4.412.771$ 498 3.031.622$ GUAVIARE 220 2.518.505$ 265 3.478.082$ 436 3.506.316$ 295 2.367.027$ RISARALDA 206 1.932.258$ 171 1.617.942$ 216 3.105.818$ 108 2.329.210$ QUINDIO 120 1.824.883$ 125 2.573.256$ 169 2.591.315$ 93 1.951.307$ CHOCO 105 714.616$ 166 1.763.286$ 198 1.624.180$ 143 1.113.387$ VICHADA 113 1.588.734$ 132 2.099.387$ 126 1.273.245$ 65 843.858$ GUAJIRA 56 1.103.176$ 97 1.128.636$ 171 1.646.575$ 34 547.455$ GUAINIA 2 3.333$ 1 5.000$ 8 92.667$ 2 34.667$ SAN ANDRES 1 4.167$ 2 24.167$ 9 6.578.239$ 5 21.067$ AMAZONAS 1 1.333$ 0 -$ 0 -$ 0 -$ VAUPES 1 2.857$ 0 -$ 0 -$ 0 -$ TOTAL 47.871 464.725.669$ 58.639 572.838.725$ 64.974 773.838.588$ 35.842 391.009.923$ LIVESTOCK LOANS 2015 2016 2017 JAN-JUL 2018
  • 30. Cows Retention Credit Line With Subsidy # oper No. Units LOAN (USD $) # oper No. Units LOAN (USD $) # oper No. Units LOAN (USD $) # oper No. Units LOAN (USD $) # oper No. Units LOAN (USD $) CORDOBA 3 179 113.333$ 63 10.997 5.165.686$ 33 3.561 2.178.333$ 15 1.221 700.333$ 114 15.958 8.157.686$ ANTIOQUIA 9 1.288 520.000$ 57 8.813 3.806.723$ 36 4.660 2.268.051$ 12 1.660 702.567$ 114 16.421 7.297.340$ CAQUETA 57 2.087 1.103.333$ 108 5.521 2.670.570$ 28 1.374 625.667$ 54 2.008 1.206.000$ 247 10.990 5.605.570$ CESAR 7 1.339 654.667$ 36 5.083 2.387.367$ 21 2.461 1.222.667$ 12 1.091 655.000$ 76 9.974 4.919.700$ SUCRE 2 17 9.333$ 39 4.806 2.321.533$ 24 2.299 1.198.667$ 14 1.216 534.400$ 79 8.338 4.063.933$ SANTANDER 5 283 148.333$ 35 5.534 1.735.000$ 30 2.867 1.591.400$ 12 791 499.787$ 82 9.475 3.974.521$ META 1 92 16.667$ 28 2.580 1.661.000$ 34 3.668 1.629.047$ 14 2.337 540.000$ 77 8.677 3.846.713$ CUNDINAMARCA 6 308 186.067$ 28 2.710 1.613.000$ 22 1.773 951.117$ 22 1.312 851.333$ 78 6.103 3.601.517$ CASANARE -$ 28 4.676 1.646.800$ 26 2.492 1.077.600$ 23 1.801 756.467$ 77 8.969 3.480.867$ MAGDALENA 2 224 124.583$ 26 4.473 1.739.310$ 22 2.030 1.051.333$ 7 658 361.333$ 57 7.385 3.276.560$ CALDAS 10 1.232 728.000$ 16 1.372 709.195$ 14 1.481 810.000$ 5 605 303.333$ 45 4.690 2.550.529$ HUILA 10 142 72.178$ 52 1.880 945.733$ 20 1.247 634.667$ 11 335 146.000$ 93 3.604 1.798.578$ ATLANTICO 4 681 450.000$ 12 1.588 827.333$ 4 450 273.333$ 1 150 100.000$ 21 2.869 1.650.667$ BOYACA 11 92 58.333$ 43 1.467 893.217$ 14 1.089 594.000$ 4 180 65.333$ 72 2.828 1.610.883$ TOLIMA 2 26 15.667$ 25 1.217 667.267$ 8 1.037 396.333$ 8 322 186.667$ 43 2.602 1.265.933$ BOLIVAR 2 228 146.458$ 10 1.378 755.333$ 5 330 201.667$ 1 18 3.000$ 18 1.954 1.106.458$ VALLE -$ 6 450 300.000$ 9 1.020 577.333$ 3 280 186.667$ 18 1.750 1.064.000$ ARAUCA -$ 8 285 190.000$ 9 627 369.333$ 6 230 115.707$ 23 1.142 675.040$ RISARALDA 1 125 83.333$ 2 172 114.667$ 4 500 260.000$ 3 210 140.000$ 10 1.007 598.000$ LA GUAJIRA -$ 3 605 96.667$ 5 268 178.333$ 1 100 26.667$ 9 973 301.667$ QUINDIO -$ 2 210 63.333$ 5 248 152.000$ 2 120 80.000$ 9 578 295.333$ GUAVIARE -$ 1 140 50.000$ 3 391 155.333$ 1 15 10.000$ 5 546 215.333$ VICHADA -$ 2 210 140.000$ -$ 1 100 33.333$ 3 310 173.333$ CHOCO -$ 1 50 33.333$ 2 165 83.333$ 1 75 50.000$ 4 290 166.667$ BOGOTA D.C -$ 1 87 33.333$ 1 250 53.333$ 1 100 66.667$ 3 437 153.333$ CAUCA -$ 4 229 139.000$ -$ 1 15 10.000$ 5 244 149.000$ NARINO -$ 18 211 140.166$ 1 13 8.667$ -$ 19 224 148.833$ PUTUMAYO -$ 2 31 13.333$ 6 229 104.333$ 2 20 7.333$ 10 280 125.000$ NTE. SANTANDER 1 66 22.000$ 1 32 17.067$ 1 43 23.333$ -$ 3 141 62.400$ Total 133 8.409 4.452.286$ 657 66.807 30.875.967$ 387 36.573 18.669.214$ 237 16.970 8.337.927$ 1.414 128.759 62.335.395$ STATE 2015 2016 2017 2018 TOTAL