Resilient Coffee in Central America project Quarterly Report

Resilient Coffee in Central America project

Quarterly Report First Quarter, October to December 2019

Submission Date: January 15, 2020

Cooperative Agreement Number: #AID-596-A-17-00002

Activity Start Date and End Date: September 30, 2017 to September 19, 2020

AOR Name: Mary Rodriguez

Submitted by: Luis Alberto Cuellar, Project COP

Borlaug Institute for International Agriculture | Texas A&M AgriLife Research 87 North Ave & 13 West #806 Escalón, San Salvador, El Salvador Tel. +503.7680.1133 | Office: +503.2562.1211

Email: luis.cuellargomez @ag.tamu.edu

This document was produced for review by the United States Agency for International

Development USAID/El Salvador Mission.

DISCLAIMER: The author’s views expressed in this publication do not necessarily reflect the

views of the United States Agency for International Development or the United States

Government.

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1. TABLE OF CONTENTS

1. Table of Contents ii

2. Acronyms and Abbreviations iv

3. Executive Summary 1

4. Implementation Activities and Progress 2

4.1. Implementation Status 2

Pillar 1: Establishing Resilient Coffee Options and Business Opportunities 2

Pillar 2: Demonstrating Climate-Smart Coffee Cultivation 2

Pillar 3: Dissemination of Resilient Production and Better Environmental Practices 4

Pillar 4: Access to Finance, New Business Opportunities and Employment 6

Pillar 5: Strengthening Research Capacities 7

4.2. ME&L Plan and Indicators Progress 8

4.3. Communications, Knowledge Management and Outreach 10

5. Integration of Crosscutting Issues and USAID Forward Priorities 11

6. Environmental Mitigation and Monitoring Plan 12

7. Stakeholder Participation and Involvement 13

8. Planned Activities for Next Quarters 14

9. Management and Administration 16

10. Cash Flow Report and Financial Projections 17

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Basic Project Data

Program Name: RESILIENT COFFEE IN CENTRAL AMERICA

Project.

Activity Start Date and End

Date: September 30, 2017 to September 29, 2020

Name of Prime

Implementing Partner:

The Norman Borlaug Institute for International

Agriculture at Texas A&M AgriLife Research

Cooperative Agreement

Number:

#AID-596-A-17-00002

Name of Subcontractors/Sub-

awardees:

CAPUCAS Cooperative

Pomona Impact

Major Counterpart

Organizations

IHCAFE from Honduras

SALVADORAN COFFEE COUNCIL (CSC)

SALVADORAN ASSOCIATION OF COFFEE

PROCESSORS AND EXPORTERS-ABECAFE

ANACAFE

FECCEG

SWISSCONTACT

COMSA - CAFE ORGANICO MARCALA

COHONDUCAFE

CAFICO

PROCAGICA-IICA

Geographic Coverage

(cities and or countries)

EL SALVADOR, HONDURAS AND

GUATEMALA

Reporting Period: October – December 2019

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2. ACRONYMS AND ABBREVIATIONS

ABECAFE Salvadoran Association of Coffee Processors and Exporters ACODIHUE Association for Cooperation in the Integral Development of

Huehuetenango AMCES Alliance of Women in Coffee, Chapter in El Salvador ANACAFE National Coffee Association (Guatemala) APOLO Association of Producers of Olopa (Guatemala) AOR Agreement Officer’s Representative in USAID ASCAFE Salvadoran Association of Coffee Cuppers ASOBAGRI Barillense Association of Farmers (Guatemala) CAFECIBA Cooperative Society of Coffee Growers of Ciudad Barrios (El Salvador) CAFICO Fine Coffees of Corquín (Honduras) CAFISCO Specialty Coffees of Copán CAPUCAS Coffee Cooperative Capucas (Honduras) CATIE The Tropical Agricultural Research and Higher Education Center (Costa Rica) CEDICAFE The Coffee Research Center of ANACAFE (Guatemala) CISP Comitato Internazionale per lo Sviluppo dei Popoli CLAC The Latin American and Caribbean Network of Fair-Trade Small Producers and Workers COHONDUCAFE Coffee Company of Honduras COMSA Marcala Organic Coffee, Inc. (Honduras) CONAMYPE National Commission for Micro and Small Enterprises (El Salvador) COP Chief of Party CQI Coffee Quality Institute CSC Salvadoran Coffee Council FECCEG Marketing Federation for Specialty Coffee of Guatemala

ICAFE Costa Rican Coffee Institute

IHCAFE Honduran Coffee Institute IICA Inter-American Institute for Cooperation on Agriculture INLOHER López Hernández Investments (Honduras) ME&L Monitoring, Evaluation and Learning PROCAGICA Central American Program for Integral Management of Coffee Leaf Rust PROMECAFE Cooperative Regional Program for the Technological Development and Modernization of Coffee Cultivation RCBD Randomized Control Block Design SCA Specialty Coffee Association SINTERCAFE International Coffee Week UIUC University of Illinois at Urbana-Champaign UNEX Union of Exporters (El Salvador)

3. EXECUTIVE SUMMARY

During the first quarter of FY2020 the technical team from the Resilient Coffee Project for Central America invested considerable efforts in monitoring and evaluating many aspects of the development and growth of the coffee plants on the demonstration plots established in FY2018 and FY2019. The Project’s participants in demonstration plots played an important and very significant role by keeping track and recording daily activities for the Project’s technical team. Also, in order to improve the coffee value chain in all countries, important alliances were consolidated with YARA fertilizers and Nestle, S.A. in addition to the many alliances established previously including with coffee exporting companies. The following results summarize some of the efforts:

• In coordination with Project participants from Honduras and Guatemala a total of 6 new sites were selected (3 from each country) for the establishment of additional demonstration plots. The new plots were established with the coffee variety known as Geisha. Seeds were imported from Panama and were the best genetic material available. Panama is well known for cultivating this variety which in several specialty coffee auctions has earned prices over $1,000.00 per lb.

• In Guatemala, the new demo plots are in the Acatenango and Huehuetenango regions while in Honduras, the new demo plots are in Siguatepeque, Santa Bárbara and Lempira.

• For all six demo plots the participants used their own funds to purchase the Geisha plants, and fully funded all the labor needed for the establishment of the plots, showing in this way their deep level of commitment to the Project and its goals.

• At the CAPUCAS Cooperative a biochar training course was conducted by Dr. Leo Lombardini. Representatives from all three counties attended the training. By gender the attendance was six men and four women.

• Technical personnel from the Project along with agronomist Rudi Calero from Nestlé S. A. conducted field visits to 13 of the demonstration plots that were established in 2019 in El Salvador. The visits’ main purpose was monitor the performance and adaptation of Nestle's hybrids. To better understand their performance in different conditions, they had been planted in different geographic and agroecological environments.

• In this Project year, a total of 2,343 producers and local technical experts on different aspects of the coffee chain participated in the varied activities carried out by the Project. The activities included training, field visits to demo plots, and forums.

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4. IMPLEMENTATION ACTIVITIES AND PROGRESS

4.1 IMPLEMENTATION STATUS

Pillar 1: Establishing Resilient Coffee Options and Business Opportunities

On October 5th, the Project staff participated in the National Coffee Day celebration in El Salvador with a booth at the Convention Center. The staff had the opportunity to share with the attendees the objectives and results of the Project. Among other visitors we received the Minister of Agriculture, Minister of Tourism, Executive Director of the Salvadoran Coffee Council and other government officials. During the period November 26th-29th Ing. Oscar Ramos, Regional Technical Coordinator of the Project traveled to Dominican Republic to participated in the Second Regional Coffee Varieties and Leaf Rust event, hosted by PROMECAFE and CATIE. Technical presentations were made and meetings took place between international and national specialists that make up the regional platform on genetic improvement and integral coffee leaf rust management. Results of the Resilient Coffee Project of Central America were presented along with the methodology used to network among the demonstration plots. The Project’s contributions to the genetic improvement of coffee plantations in the three Project countries were highlighted. All three countries are members of PROMECAFE.

Pillar 2: Demonstrating Climate-Smart Coffee Cultivation El Salvador

• During the period October 14th to 18th, technical personnel from the Project along with agronomist Rudi Calero from Nestlé, S. A., conducted field visits to 13 of the demonstration plots that were established in 2019 in El Salvador. The main purpose of the visits was to monitor the performance and adaptation of Nestle’s hybrids that were planted in different geographic and agroecological conditions. These demo plots visited included: i) In the western region: the farms La Esperanza; San Antonio; Amitaba; Plan del

Hoyo; El Pilón; Lictoria; San Ramón, Apaneca, Cartagua, and Antioquia. ii) In the eastern region: La Cooperativa farm in Ciudad Barrios, La Primera farm, and

El Tigre farm.

• During the period December 14th, the San Carlos 2nd Cooperative sent 21 members (10 men and 11 women), to the Cooperative of Coffee Producers of Ciudad Barrios (CAFECIBA), to see at firsthand two of the demonstration plots and how their coffee hybrid plants are evolving and adapting in comparison to other varieties in the agroecological conditions of that region.

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Guatemala

• Three (3) new demonstration plots were established utilizing 1,000 seedlings of the Geisha variety. Location of demo plots are as follow: a) La Soledad farm, Acatenango; b) Oregano farm, Huehuetenango and c) Miralvalle farm, Huehuetenango in Guatemala.

• During November 12th, with the technical support of Julio López from ASOBAGRI the Project led a field trip with 27 producers (7 women and 20 men) from the Department of Quiché, to Las Zetas Farm located in Barillas, Huehuetenango, Guatemala. At this farm we observed demonstration plots with hybrids established during 2018. The purpose of the field trip was to show producers from Quiché the hybrid alternative, how it tolerates leaf rust, its higher yields and its adaptation to climate change and its early maturation.

• ASOBAGRI also conducted another field visit on December 10th to Finca Las Zetas, Barillas Guatemala, with some of their own members to teach them about the hybrids demonstrated by the Project, their resilience to coffee leaf rust and other advantages that they have when compared to traditional varieties. This field visit was attended by 20 cooperative members (11 women and 9 men).

Honduras

• Agropecuaria Popoyán from Guatemala (as part of their cost-share) grew four thousand (4,000) Geisha plantlets for the Project. The plantlets were distributed among carefully selected Honduran farmers as Project participants for the establishment of three (3) new demonstration plots. These new demonstration plots will generate knowledge of its performance, adaptation and agronomic management in different agroecological conditions of Honduras. The demonstration plots were established in the following areas: One was established in Siguatepeque, Comayagua, with the Project participant Molinos de Honduras (which is the coffee exporter Volcafé), and two (2) more with selected producers associated with the COHONDUCAFE Foundation cluster in Santa Bárbara and Lempira.

• Project’s technical team visited CAFISCO (Specialty Coffees of Copán), a newly formed association of small coffee producers based on Copán, Honduras. The Project extended an invitation to the members of the association to actively participate in the Project’s participatory technical activities as well as to visit demonstration plots located in that region.

• During October, the Project’s technical team continue to monitor COHONDUCAFE’s demonstration plots to ensure implementation of the pre-established protocol for crop maintenance and agronomic practices on the parcels that were established during 2018 and 2019. The agronomic practices include weed control, foliar fertilizer application, planting and management of shade for coffee plants, and soil conservation practices.

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Pillar 3: Dissemination of Resilient Production and Better Environmental

Practices

The Project team (COP, Regional Technical Coordinator, Technical Coordinator for Guatemala, Communications Specialist, Dr. Roger Norton and Rodrigo Chávez) together with the AOR, Mary Rodríguez, held a meeting with Guatemala USAID mission representatives on December 11 in Guatemala, to present summaries of key activities and results of the Project, with emphasis in results obtained in Guatemala. During this trip AOR Mary Rodríguez visited the Las Flores Experimental Farm of ANACAFE to view the results of the plot established with a Nestlé, S.A. hybrid. Also during this trip she was able to visit producer Ennio Pérez; a Project participant that has demo plots with hybrids in Acatenango, Chimaltenango, in order to view a newly established demonstration plot with the Geisha variety; and a third visit was made to producer and Project participant Marco Tulio Escamilla in Villa Canales, Guatemala. The journalist Maryn McKenna, a writer for U.S. magazine The Atlantic, visited Guatemala December 14 to 16 to interview Project staff, including Dr. Norton, the COP, Rodrigo Chávez, and Oscar Ramos about the Project and the role of coffee hybrids in combatting coffee leaf rust. After the talks the Project team, including Daniel Dubón, escorted her to visit and talk with coffee farmers with demo plots in different regions. The purpose of her visit was to gather information for a planned article on how coffee leaf rust and climate change affect the coffee sector, and possible responses to these threats. While visiting small producers of San Pedro Yepocapa, Chimaltenango, she was also able to see firsthand and learn about the rust-tolerant coffee varieties and coffee hybrids planted in 2018. The Bella Vista farm of Luis Pedro Zelaya was also visited in Ciudad Vieja, and the purpose of that visit was to see the management of a farm that has varieties susceptible to rust. Finally, a visit was made with her to Agropecuaria Popoyán to observe the process of producing varieties and hybrids with genetic purity on a large scale, as well as the grafting process to protect roots from nematodes. Ms. McKenna will be preparing material on this subject to publish in the magazine’s online edition next year.

CAPUCAS Training

• A training course in biochar was offered at the Capucas Cooperative during November 4th to the 7th. This training was conducted by Dr. Leonardo Lombardini, and a total of 10 people attended (6 men and 4 women), from all three Project countries.

Other training

El Salvador

• On October 1st, a replica of previous regional training on lemongrass was conducted at El Pilar farm. Those attending included members of the AMCES (Women’s Coffee Alliance, El

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Salvador Chapter) from Metapán in Santa Ana. A total of 60 people participated (37 women and 23 men).

• In coordination with the Salvadoran Association of Coffee Cuppers – ASCAFE, a Level I course for Cupping, Roasting and Baristas, was taught. This course was offered in two phases in October 17-19 and October 25-26. A total of 13 people took the training (5 women and 8 men).

• On November 6th, a training course on organic production and varieties with higher tolerance to coffee leaf rust was offered at El Jabalí Cooperative. A total of twenty people attended of which 11 were men and 9 were women.

• ASCAFE developed the content for a Level II course titled “Coffee Processing, Quality Control and Micro-Lots” and taught the course November 27th to 29Th. With completion of this training 24 people were certified as coffee cuppers (5 women and 19 men).

• A Gender and Climate Change workshop was held with 30 women representatives of the San Carlos 2nd Cooperative in the Municipality of Osicala, Department of Morazán. On that training day, the attendees had the opportunity to learn about climate change and its effects on coffee cultivation, how resilient varieties are more resistant to climate change, and they also learned about conservation practices for farm fields.

Guatemala

• On October 9th. a workshop on grafting of the H-1 hybrid (called Centroamericano) was held with small producers from San Pedro Yepocapa, Chimaltenango. It was taught by field technicians from the Buena Vista Farm of ANACAFE in coordination with the Project. A total of 36 people attended (5 women and 31 men).

• In collaboration with the Association of Producers of Olopa, APOLO, basic level training was provided for youths on coffee cupping and barista techniques. The participants were 24 students (22 men and 2 women) from the military school Adolfo V. Hall in the Department of Chiquimula. This training took place on October 15th.

• A total of ten students from Huista, Huehuetenango took a two-day youth training workshop offered by ANACAFE’s Coffee School and led by Esteban Lara, member of the Board of Directors of ANACAFE, in coordination with the Project. During the first day the workshop addressed issues related to climate change, coffee growing challenges and resilience, and the second day’s topics covered coffee genetics. The participants were 3 women and 7 men.

• On November 26th, a replica of a previous Project regional training course on passion fruit production was given in Huehuetenango for members of and in coordination with

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ACODIHUE (the Association for Cooperation for the Integral Development of Huehuetenango) in which 15 people participated (5 women and 10 men).

• On December 4th and 5th the Project arranged for a cupping training course to be offered in Chiquimula to Project participants and other coffee producers in ANACAFE’s VII region of Guatemala. The course was taught by Roberto Soto and Elmer Orellana, who are CQI (Coffee Quality Institute) certified for ANACAFE. A total of 22 people participated (11 women and 11 men).

Honduras

• During the November visit of Dr. Leonardo Lombardini to Capucas, he also visited the COMSA cooperative in Marcala, along with technical personnel from the Project. The purpose of the visit was to reinforce the training about utilization of biochar and the production of organic coffee.

Pillar 4: Access to Finance, New Business Opportunities, Employment and Markets

In conjunction with the Coordinadora Latinoamericana de Comercio Justo (CLAC) an event titled “Developing the Women’s Role in the Coffee Sector” was arranged during November 12th in Huehuetenango, Guatemala and it was carried out in Guatemala. To the forum 104 people participated (33 men and 71 women). In Costa Rica during the period November 12th – 16th three Project team members participated in SINTERCAFE (International Coffee Week), annually the most important coffee event at which many coffee company executives and other leaders attend. Many valuable contacts were made for the Project. During this trip a meeting was also held with ICAFE (Instituto del Café de Costa Rica) to explore the applications of their improved coffee cloud system for monitoring, management and alerts about infestations of coffee leaf rust and pests. Conversations were also held with ICAFE about the utilization of coffee byproducts. Another important meeting took place with PROMECAFE, in order to further explore technology transfer for coffee at a regional level. During this week Project staff members also learned more about multiplication of new coffee varieties and hybrids in nurseries and received updates on new state-of the-art processing machines and sustainability practices in the coffee value chain. The Project team followed up on the work performed by Pomona Impact with young entrepreneurs developing a beekeeping and honey business at the Cooperative Las Tablas in El Salvador. Arrangements were made in order to facilitate participation of members of the Cooperative Las Tablas in the November 28th-29th “Bootcamp 2019 for Innovation and Entrepreneurship” promoted by CONAMYPE.

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Arrangements were made between the Project technical team, the Cooperative Capucas and Agropecuaria Popoyán to continue the planning to develop new plant nurseries dedicated to production of coffee hybrids along with other resistant varieties that coffee farmers and cooperative members need.

Pillar 5: Strengthening Research Capacities

Sarah Brinkley continued to work on her research on the link between soil health and nutrition on the one hand and coffee quality on the other. As part of her research fertilization activities at the selected research plots were carried out and a second round of soil and leaf samples were obtained for the 2018/2019 harvest year. Green coffee, soil and leaf samples were collected with the help of the Project consultant Alex Meléndez and Yulisa Tábora of Capucas. Ms. Brinkley has been working with 96 experimental plots, and during this quarter she collected samples from 48 of them. Analyses of the samples were carried out in Dr. Andrew Margenot's soil lab at the University of Illinois Urbana-Champaign (UIUC). The results are expected to present an integrated view of soil health and fertility and the relationship with coffee quality. In addition, a nutrient analysis was performed on 10 grams of each coffee sample by UIUC. Each of the coffee samples also was classified by screening size, primary and secondary defects, UV-detected defects. The last test performed on the 480 samples was carried out by using gas chromatography & mass spectrometry. The remaining coffee samples have been stored in a -20o C. freezer

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4.2 ME&L PLAN

Indicators Progress

Performance Indicators Disaggregation Q1 Q2 Q3 Q4 FY20 Target

FY20

Pillar 1. Establishing Resilient Cultivation Options and Business Opportunities

1.1 Number of technical guides produced and distributed on resilient coffee technologies.

N/A 0 0 3

Pillar 2: Demonstrating Resilient Coffee Cultivation

2.1. Number of demonstration trials of new varieties and resilient management practices as a result of USG assistance

Country 6 6 0


Guatemala 3 3


El Salvador 0 0


Honduras 3 3

Pillar 3: Dissemination of Resilient Production and Better Environmental Practices

3.1. (EG.11-2) Number of institutions with improved capacity to assess or address climate change risks supported by USG assistance

Country, 0 0 2

3.2. (EG.3-2) Number of individuals participating in USG food security programs

Sex, country 2343 2343 13,511


Male 1152 1152 10,133


Female 1191 1191 3,378


Guatemala 1761 1761


El Salvador 562 562

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Honduras 20 20

3.3. ((EG.3.2-24) Number of individuals in the agriculture system who have applied improved management practices or technologies with USG assistance

Sex, 57 57 139

3.3. ((EG.3.2-24) Number of individuals in the agriculture system who have applied improved management practices or technologies with USG assistance Male 41 41 104

3.3. ((EG.3.2-24) Number of individuals in the agriculture system who have applied improved management practices or technologies with USG assistance

Female 16

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3.4 (EG.11-6) Number of people using climate information or implementing risk-reducing actions to improve resilience to climate change as supported by USG assistance

Sex, country 1489 1489 6,597


Male 749 749 4,948


Female 740 740 1,649


Honduras 10 10


Guatemala 1123 1123


El Salvador 356 356

3.5 (EG 11-1) Number of people trained in climate change adaption supported by USG assistance

Sex, country 0 0 0

Pillar 4: Access to Finance, New Business Opportunities, Employment and Markets

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4.1. Number of public-private partnerships formed as a result of USG assistance

Country 0 0 2

4.2 Number of producers of high value small (less than 50 quintals) green micro lot coffee linked to roasters via direct trade

Country 0 0 2

4.3 Number of pilot coffee nurseries of at least 30,000 plantlets created

Country 0 0 2

4.4. Number of business alliances created between farmers and other links in the value chains

Country 1 1 8


El Salvador 1


Honduras 0


Guatemala 0

4.5. (EG.3.2-27) Value of agriculture-related financing accessed as a result of USG assistance

Sex, 0 0 $150,000

4.6. Number of full time equivalent jobs created in the coffee value chain

Sex, country 5 5 172


Male 5 5 129


Female 0 0 43


Guatemala 0 0


Honduras 4 4


El Salvador 1 0

Pillar 5: Strengthening Research Capacities

5.1 Number of new research themes generated N/A 0 0 0

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4.3 COMMUNICATION, KNOWLEDGE MANAGEMENT AND OUTREACH

The Project participated with a stand at the National Coffee Producers Day event, carried out in the Convention Center in San Salvador and promoted by the Salvadoran Coffee Council – CSC. Through this particiption the Project was able to publicise the work done in the various coffee regions, the scope of Project’s work and its achievements for the region. The Project recorded a video on how to make biochar based on the training conducted by Dr. Leonardo Lombardini. It was done in the course of training Project participants from all three countries at CAPUCAS. The videographic material will be edited before making it accessible via social media and for use in future training. Photographic documentation was compiled on the workshops and courses funded by the Project and taught by ASCAFE. The coverage included topics such as coffee processing and milling, good manufacturing practices, value added deriving from quality, barista skills, cupping and roasting. In field visits to demonstration plots in Guatemala and El Salvador photos were taken to document the growth of resilient varieties and hybrids, the first phase of coffee production, the harvesting process and the coffee milling process. A directory of Project partners and participants was compiled including names, affiliations, titles, and email addresses. This information will be used to send out digital Project information such as newsletters. A social media strategy was developed. Its first phase outlines the creation of Project profiles on Instagram, Facebook and YouTube, following the guidelines of the Branding and Marking Plan of the Project. The proposal includes a daily publication on each social network, where visits and field trips made by the Project technical team will be shared widely; the main purpose of using social media is to make available information about the Project’s work and results obtained on the demonstration plots. A second phase will include the creation of a profile on the Flicker social network, which will serve as an internal and external photo bank about Project activities, classified by events and dates of activities in which the Project has participated.

5. INTEGRATION OF CROSSCUTTING ISSUES and

USAID FORWARD PRIORITIES The Project’s support for the Forum "The Role of Women in the Coffee Sector" in Guatemala, with the participation of 107 people mostly women, underscored the Project’s aim of economically empowering women as a mechanism for both increasing their control over family incomes and

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reducing the risk of gender-based violence. The Forum was also supported by the Comitato Internazionale per lo Sviluppo dei Popoli (CISP), within the framework of the International Day of Non-Violence against Women. The Project also supported participation in the "Gender and Social Inclusion Level I" workshop with USAID counterparts taught by USAID's Monitoring, Evaluation and Learning Initiative. We observe that now there is a greater participation and engagement by individual women and women’s organizations in coffee related activities such as: training, touring demo plots, establishing demo plots and forums about women’s roles, among activities. Also, it’s evident that in activities such as cupping, roasting and barista skills, that once were dominated by men, there is now a healthy participation of women. In part this is an evident result of the empowerment of women in the coffee value chain. Another important achievement was the Project’s Forum held in Huehuetenango, Guatemala called “The Role of Women in the Coffee Sector," in which many indigenous people, and mostly women, attended. This was a significant achievement in regard to social inclusion and the access of indigenous women to technical knowledge about coffee farming, new resilient varieties and economic empowerment by taking on key roles in the coffee value chain at a local level and in their organizations. The Project has continued to support activities for entrepreneurial development of youth in all three countries, based on the entrepreneurship incubation methodology of Pomona Impact

6. Environmental Mitigation and Monitoring Plan The Project has continued to promote practices aimed at reducing environmental vulnerability and improving climate change adaptability. In El Salvador Project participants with the 31 demonstration plots have agreed to implement a minimum of (3) methods for soil conservation practices. On land with steep slope participants built individual and/or continuous terraces while others-built bench terraces and planted on contour lines. The Project promotes planting of coffee under shade due to its multiple agroecological and environmental benefits, the shade can be temporary or permanent when utilizing fruit trees, ingas trees, woody trees, or a combination of them. Another conservation practice consists in the adequate usage of “beneficial grass or weeds” that with proper management can prevent soil erosion from rainfall and help retain soil humidity. The Project continues to promote organic agriculture using, for example, decomposed coffee pulp as a supply of organic matter for the soil and organic fertilizers such as bokashi.

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On the San Juan farm owned by a member of the Association of Women in Coffee, chapter of EL Salvador (AMCES) located in Metapán, Santa Ana, a runoff water conduit has been built with Project advice for minmizing soil erosion. In the highlands of El Salvador, windbreaks have been planted with Copalchi trees, as on the farm El Pilón, located in Los Naranjos, Juayúa, Sonsonate. Given the topography where coffee is produced in Guatemala, in the network of demonstration plots their soil and water conservation practices were implemented in order to strengthen adaptation to climate change. In that country 35 demo plots were established: 8 in 2018, 24 in 2019 and three more recently established with Geisha. Of these plots, 33 have permanent shade and 28 have temporary shade 25 plots have some kind of soil cover such as Brachiaria ruziziensis, forage peanuts – Arochis pintoi, stubble or the branches and leaves from coffee tree prunings. These practices have been promoted by the Project for climate change adaptation because they lower ambient and soil temperatures, avoid wide fluctuations between maximum and minimum soil temperatures and maintain soil moisture. Also, in 21 of plots, participantes constructed continuous or individual terraces to reduce soil erosion and loss of nutrients. Fifteen of the plots put windbreaks in place to alleviate damage resulting from strong wind currents, which can cause dehydration in coffee plants and fruit losses. As an adaptation measure in the face of climate change, also 4 of the demonstration plots implemented organic practices. Honduras accounts for 29 of the first two rounds of demonstration plots: 8 were established in 2018 and 21 during 2019. In addition, 4 more recent plots were established with the Geisha variety. The Project’s technical team tailored its advice on climate adaptation practices according to variations in agro-ecological soil and climate conditions. The practices implemented included increased shade for coffee trees, both temporary and permanent, as well as the incorporation of organic matter such as coffee pulp in the ground in order to maintain or improve structure soil structures. In El Paraíso, in the eastern region of Honduras, environmental practices implemented on the demo plots include incorporation of mulch around the base of the plants to maintain or preserve moisture and improve soil structure. To determine effective and efficient fertilization programs, a series of soil analyses were performed.

7. STAKEHOLDER PARTICIPATION AND

INVOLVEMENT

YARA International Several meetings and phone calls were made with YARA International, one of the world’s largest fertilizer companies, to reconfirm and increase the level of its commitment to the Project’s objectives. As a result, YARA will continue to work together with Project participants by donating all the fertilizers needed for the demonstration plots established in 2019 and carrying out

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participatory research on fertilizer strategies. Plans for workshops on fertilization in all three countries during Q2 were coordinated between Project staff, YARA personnel and the local agro-services.

Agropecuaria Popoyán Ongoing communications with the technical and commercial representatives of Agropecuaria Popoyán were maintained in order to ensure the supply of Geisha genetic materials needed for the the new demonstration plots to be planted in FY2020. These plots will be located as follows: one in Guatemala with Luis Pedro Zelaya, two in Honduras with the Capucas Cooperative, and four (4) with selected participants in El Salvador.

Nestlé S. A. The relationship with Nestlé S.A. has continued through technical follow-up visits to the demonstration plots established with its hybrids in El Salvador and Guatemala. These demo plots have been showing excellent results in regard to plant growth and adaptation in the subregions of both countries. The Project will prepare a strategy for the sustainability of these coffee plantations and formally deliver it to the Project participants along with the data describing the results obtained from monitoring the plants and the corresponding evaluations.

ANACAFE – CEDICAFE, Guatemala, and UNEX, El Salvador The ongoing and constant communications and coordination of technical and research activities with these partners in Guatemala and El Salvador ensures the sustainability, technical monitoring, and evaluation of the demonstration plots. The partnership with Nestlé S.A is another key to ensuring their sustainability.

8. PLANNED ACTIVITIES FOR NEXT QUARTER Pillar 1: Establishing Resilient Coffee Options and Business Opportunities

During the next quarter, Project participants will be identified who can provide green coffee samples produced by their hybrids and rust-tolerant varieties. These coffees are well known for their high productivity and good cupping quality. The Project intends to promote these coffees in international markets by taking the samples to the upcoming Coffee Expo SCA 2020, in Portland Oregon, where cupping and tasting activities will take place. This forthcoming cupping activity requires a pre-cupping and recording of scores, and that will be carried out in close coordination with ASCAFE – the Salvadoran Coffee Cuppers Association. The objective is to promote these varieties and hybrids with various players in the coffee industry such as roasters and importers of specialty coffees.

Pillar 2: Demonstrating Resilient Coffee Cultivation 1. Perform agronomic measurements of the performance of genetic materials in

demonstration plots inall the three countries.

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2. In Guatemala, measurements of agronomic data on the performance of hybrids and other varieties planted in the demonstration plots established from 2018 to 2019, will be made in January of 2020.

3. In the month of February of 2020, a technical expert from Nestlé S.A. will make a visit to the Nestlé demonstration plots established in FY2019 in Guatemala.

4. In agreement with YARA International and based on the results of soil analysis, a fertilization program will be developed and implemented during the “maintenance phase” of the demonstration plots.

Pillar 3: Dissemination of Resilient Production and Better Environmental Practices 1. Training will be offered on coffee quality processing and milling to be carried out in Finca

Las Codornices, Huehuetenango, Guatemala in February of 2020. 2. A coffee cupping class to improve market access for producers in the Huehuetenango

region of Guatemala is scheduled for February of 2020. 3. A replica of the organic production training given at "Finca El Zapotal" is scheduled to be

given at San Francisco Javier, Usulután, El Salvador, in January of 2020. 4. A replica of organic production training with INLOHER is scheduled to be given at Lepaera,

Honduras in February of 2020. 5. A replica of the lemon grass training with INLOHER is scheduled to be given in Dulce

Nombre, Honduras, in February of 2020.

Pillar 4 Activities: Access to Finance, New Business Opportunities, Employment and Markets

• Guatemala is divided in seven (7) coffee regions, and ANACAFE has scheduled one Coffee Expo Day (Dia del Caficultor) per region. Activities are scheduled to take place between March and June. The first Coffee Expo day was carried out in Region 1, San Marcos, Guatemala. The Project will participate with a presentation of the joint work with ANACAFE and the activities performed in conjunction with Project partners and participants. Those in attendance will range from coffee researchers to coffee producers.

• Participation of the Project in the Coffee Expo (Dia del Caficultor) is planned to be held in region II, San Sebastián Retalhuleu, Guatemala, March 19, 2020. During this activity the Project’s work and activities will be presented in conjunction with ANACAFE. About one thousand people will participate in the event, including coffee farmers and representatives of different parts of the coffee chain.

• The Project will work to identify candidates for the management of coffee plant nurseries with the new coffee varieties and/or hybrids.

Pillar 5: Strengthening Research Capacities Sarah Brinkley’s research explores the link between soil health and coffee quality. Work will continue over the next quarter with activities that include harvesting the coffee in each of the study’s planted blocks, following the randomized experimental design procedure RCBD that has all 48 blocks isolated from each other. Soil and leaf analyses will be carried out to understand nutrient cycles and transport paths under different soil management practices. Post-harvest

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processing will bring the humidity levels of the harvested coffee beans down to 12%, and the dried coffee will be taken to a Texas A&M lab for preparation and roasting. Afterwards sensory evaluations and chemical analyses will be carried out on the roasted coffees. This research is being carried out in coordination with Honduran colleagues who are becoming familiar with the procedures.

9. MANAGEMENT AND ADMINISTRATIVE ACTIVITIES

During this first quarter of FY2020, the following administrative actions and changes took place at the project office in San Salvador. These changes were managed by the Borlaug Institute in collaboration with project COP, resulting in minimal interruption of the projects daily’s operations. 1. Walter Orellana, Project communications and outreach specialist, resigned from his

position on September 30. 2. A selection and recruitment process to replace the communication and outreach specialist

was rapidly implemented, as a result, Carla Vásquez was selected for the position on October 8.

3. On October 24, Ana María Domínguez, Financial and Administrative Manager resigned from her position.

4. Due to her outstanding previous performance, Claudia García was promoted to the position of Financial and Administrative Manager on October 25.

5. A selection and recruitment process to replace Claudia García’s previous position was conducted and as a result Ana Virginia Aguilar was selected as the new Financial and Administrative Assistant in the project on November 1.

6. On November 5th – 7th USAID office in El Salvador offered a training seminar for Financial Management and Procurement, and Procurement Systems, in which the Financial and Administrative Manager and the Financial and Administrative Assistant participated.

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10. CASH FLOW REPORT AND FINANCIAL

PROJECTIONS

(PIPELINE – BURNRATE)

QUARTER 1 QUARTER 2 QUARTER 3 QUARTER 4

A. Total LOP Budget

B. Current

Obligated

Budget

C. October -

December

2017

D. January -

March

2018

E. April - June

2018

F. July -

September

2018

G. Projected

Total Expenses as

of Sept 30, 2018

(C+D+E+F)

H. Project

balance as of

Nov.1 2018 (B-G)

3,999,949.93$ 2,619,252.00$ 69,420.60$ $203,926.38 299,671.08$ 320,301.89$ 893,319.95$ 1,725,932.05$


A. Total LOP Budget

B. Current

Obligated

Budget

C. October -

December

2018

D. January -

March

2019

E. April - June

2019

F. July -

September

2019

G. Projected

Total Expenses as

of Sept 30, 2019

(C+D+E+F)

H. Project

balance as of

Nov.1 2019 (B-G)

3,999,949.93$ 2,891,276.56$ 323,756.74$ 282,520.19$ 294,482.81$ 433,320.71$ 1,334,080.45$ 1,557,196.11$


A. Total LOP Budget

B. Current

Obligated

Budget

C. October -

December

2019

D. January -

March

2020

E. April - June

2020

F. July -

September

2020

G. Projected

Total Expenses as

of Sept 30, 2020

(C+D+E+F)

H. Project

balance as of

Sept.30 2020 (B-

G)

3,999,949.93$ 3,999,949.93$ 454,312.55$ -$ -$ -$ 2,681,712.95$ 1,318,236.98$

Year 3 END OF YEAR 3



Documents

Resilient Coffee in Central America project Quarterly Report