Pilot Applications

The below answers are paraphrased from a longer discussion, which can be accessed in full here.

Business Context

Embrapa is the Brazilian Agricultural Research Corporation, a state-owned research business affiliated with the Brazilian Ministry of Agriculture. In the first phase, a researcher applied the TEEBAgriFood evaluation framework and business guidelines with Nuu Pão de Queijo, a small and medium company. During the second phase, the application of the framework was expanded to the dairy farming chain sector.

The chosen context of the Embrapa case is the Minas Gerais Brazilian Estate, which is responsible for more than 25% of the national production of raw milk; where most of the production is located in the Cerrado biome. In this region, the main soil use is agriculture and grazing and more than 75% of producers in this state are family farmers. The region is also recognized as an Immaterial Heritage of Brazilian Culture with a geographical indication for well-known “cheese minas artisanal”.

Assessment

WHY? What was the objective of the assessment?

The main objective of the assessment is to evaluate the impacts and externalities caused by the dairy farming chain on natural capital, to highlight opportunities to reduce GHG emissions during cheese production.

The assessment’s opportunities identified are to highlight the interconnections and dependencies within the milk value chain system, including an accounting system for input of ecosystem services. The anticipated benefits are to have robust arguments to convince producers about the advantages of adopting soil and water conservation practices while adding value to their local product, opening new markets and gaining consumer trust.

The risks and challenges of the case lie in the availability of large reliable datasets to generate robust information. The target audience is mainly producers and the Brazilian Ministry of Agriculture.

WHAT? What was the scope of the assessment?

The baseline analysis is 2017 Agricultural Census, produced by the Brazilian Institute of Geography and Statistics (IBGE), Map biomas map and the Digital Atlas of Brazilian Pastures. The geographical boundary is the Cerrado Mineiro region.

The research uses both aggraded secondary data and direct measurement at the property scale. ​

HOW? What was measured and valued?

Embrapa established an input and output model to evaluate impacts and dependencies. On inputs, they consider electricity consumption, national resources use (soil, plants, water), fertilizer, labor, fuel and machines and all nutritive food for cattle herd. On output, they collected information on milk production, waste materials and Green House Gas Emissions. The valuation of these material impacts and dependencies is currently being completed.  

Among other indicators, they evaluate the % of degraded pasture in farm land, the loss of soil in tons per hectare per year, and % of carbon stock (sequestration) in the topsoil.

WHAT NEXT? What were the results of the assessment?

The study is under conclusion to include a field verification process and model calibration. The preliminary results show that natural capital is the most negatively impacted by the externalities generated by the milk production process.​ However, the restoration of degraded pastures in Cerrado Mineiro has the potential to mitigate 5.8 million tons of carbon per year.

A strategy to reverse natural capital degradation is investments in human capital, offering capacity-building opportunities to producers, upskilling and transferring knowledge to them on soil and water conservation.

The assessment also shows the need to integrate the federal, state and municipal governments’ actions to induce programs that promote the adoption of soil and water conservation practices specific to each producer profile.​

Learn more about Embrapa here.

The below answers are paraphrased from a longer discussion, which can be accessed in full here.

Business context 

Liv Up is a foodtech. In 2016, they identified that the new generation lacks time and dedication to cook. This inspired them to create a new way of living and eating that could be practical, healthy, and extremely tasty. Their value chain focuses on the national territory of Brazil, through direct sales to the final consumer in a linear system. About 11 states across Brazil are restocked every week by the company’s headquarters in Barueri – São Paulo. They have a relationship of trust and partnership with their stakeholders, mainly with suppliers and clients – the two ends of the productive chain. The aim is to integrate the whole chain, incorporating all the parts in the value and mission of the brand, and together build the food system of our time.    

Assessment 

WHY?: What was the objective of the assessment? 

The potential applications identified are to assess the magnitude of the impacts of organic and family farming with “dedicated planting” (direct partnership with farmers), and to compare processes in different chains (organic vs. nonorganic).  Moreover, there is an interest in mapping sustainable opportunities for the full value chain development. 

Liv Up anticipated that the assessment would provide several benefits, such as the mapping of possible chain risks, risk and process management improvement, development of next steps, and a competitive advantage through improved communication and optimized value chain.   

WHAT?: What was the scope of the assessment? 

The assessment focuses on the product level, incorporating the full value chain, from cradle-to-gate. Both business impacts and impacts on society have been assessed through qualitative and quantitative valuation. The baseline used are the current mostly nonorganic practices and the unoptimized chain. The scenario focuses on the identification and comparison of some processes of the organic production chain and the traditional production chain.  

HOW?: What was measured and valued? 

The main objective is to measure social and human impacts of “dedicated planting” (direct partnership with farmers) and organic agriculture, in addition to mapping opportunities for the chain development. The measurement of impacts phase is carried out by a specialized company hired by Liv Up, which makes technical assistance easier and aims to structure rural productive systems in a humanized way with Liv Up’s partners. The producers’ growth is monitored to understand the scalability of the “dedicated planting” process.  

The quantitative analysis focused on: 

Socioeconomic Indicators 

• Average household income  
• Number of people living in the same house (how many work directly with agriculture) 

Property organization and production indicators 

• Productivity (monthly cost of keeping production going for the farmer) 
• Labor cost 
• Indirect costs (fertilizer, seeds etc) 
• Production diversification rate 
• Water consumption (volume) 
• Green fertilization usage 

Commercialization indicators 

• Commercialized volume for “dedicated planting” 
• Financial gains (R$) by planting planning with Liv Up (e.g., R$ paid per crop in the purchase of ingredients from dedicated planting and other sources) 
• Liv Up’s representativeness  

 The qualitative analysis is being measured by surveys made by a specialized research company and internal data analysis. The social and human capital impacts analysed are the following: 

• The producer’s story how did he started planting 
• The producer’s story with Liv Up (what he likes the most about the partnership, life quality improvement – before and after our partnership) 
• Impacts of some of the benefits of dedicated planting (rural credit, purchasing guarantee, socio-financial stability; flexibilization of the vegetables standard) 
• Differences between short chains (Liv Up) and long chains (other distributors)  
• Benefits of organic planting (ingredient quality, wellbeing) 
• Acquisition of new machinery and farms  
• Indirect community impacts generated by the dedicated plantation 

 WHAT NEXT?: What were the results of the assessment? 

Liv Up reports that a better understanding and valuation of the impact generated across their food system has been obtained through the assessment. Several practical decisions have been taken that will be implemented to improve their operations further: 

• Liv Up’s Sourcing Strategy will be consolidated​ by prioritizing organic food and direct partnerships​ 
• Liv Up’s Sustainability and ESG Strategy​ will be consolidated  
• Quantitative and qualitative valuation showed that the social capital generated through direct partnerships. This leads to better communication with investors and consumers about impact and strengthens their rebranding around impact: “Liv Up: Food for those who matter”​ 
• Based on the assessment, more resources to the sustainability department have been allocated to deepen the analysis​, including creating a job for ESG management and hiring consultants to collect data.  

Learn more about Liv Up here.

The below answers are paraphrased from a longer discussion, which can be accessed in full here.

Business context 

NUU is a production company that depends on farmers. An important product the NUU makes is “pão de queijo, a typical cheese bread. With 100% supply from small rural producers from the Serra do Salitre (Minas Gerais) in Brazil, the company uses a traditional recipe, connecting the countryside and urban consumers. 

The company workforce is 90% women, and the owner wants the whole production to be sustainable. As NUU depends on the farmers, there is an intention to start a fund to pay the farmers that agree to start a transition to regenerative livestock production. A factory is also under construction and aims to receive the milk and cheese from the suppliers and produce the “pão de queijo” in a sustainable way. 

This assessment has been supported technically by EMBRAPA, the Brazilian Agricultural Research Corporation.  

Assessment 

WHY?: What was the objective of the assessment?  

As NUU is an agribusiness that operates across the whole food system – production, manufacturing, distribution – it is important to understand how the capitals interact along the value chain, assess possible trade-offs and value these in order to take better decisions. 

The aim of the assessment is to understand the risks and opportunities of soil management at the farm level to attract funds to support the transition to a sustainable production chain and make the Nuu Pão de Queijo 100% sustainable. The aim is that this will lead to improved stakeholder engagement. 

WHAT?: What was the scope of the assessment? 

The assessment will focus on the product level, on milk production specifically and its upstream value chain. It will assess the impacts and dependencies of livestock land use through quantitative and if possible monetary valuation. Baseline and scenario interventions are considered for this assessment.  

One impact and one dependency pathway are considered as potentially material.  The impact pathway that is considered is land use change, leading to land degradation and degraded pastures that lead to a change in land tenure contracts, due to soil degradation, soil erosion, water shortages, habitat and pollination loss. 

The dependency pathway that is considered material is that of traditional supplier loss. These suppliers are increasingly dependent on external inputs such fertilizers, pesticides and irrigation for their production, leading to a necessity to find new suppliers and/or start a commercial relationship with the new landowners. 

HOW?: What was measured and valued? 

Based on the material pathways, the following material issues are being assessed: land use, fertilizer dependency, GHG emissions, and food security. The valuation of these material impacts and dependencies is currently being completed.  

WHAT NEXT?: What were the results of the assessment? 

The aim is to relay the results of the assessment to the business. Nuu Pão de Queijo started a voluntary carbon compensation, and the idea is to make TEEBAgrifood methodology part of NUU business plan. 

In June 2021, the project submitted to “Sustainably rurality Cerrado” has been approved. This multi-stakeholder prize is led by IASB – The Brazilian Institute of Sustainable Development. The project will have additional financial support for data analysis. On the 79 applications, 20 were selected, and only four are led by women, including the NUU case.  

Synergies 

In June 2021, EMBRAPA organized an online event to promote low carbon initiative in Brazilian agriculture sector and have invited Liv Up as a speaker. The same month, Nuu Pão de Queijo owner presented the case in a webinar on Foodtech opportunities in Brazil. 

Learn more about Nuu Pão de Queijo here.

Business context 

SOESP buys tropical forage seeds from production fields and coats them with a mix of products that improves the quality drastically and sells the seeds to more than 20 countries. SOESP has been committed to providing farmers in Brazil and around the world with pasture seeds. 

Assessment 

 WHY?: What was the objective of the assessment?  

The aim of the assessment is to measure the impacts of the whole seed production chain, whether caused by the office or by the factory.  

In the production process, improper solid waste management (collection, transfer, treatment, recycling, and disposal) is associated to a range of risks, such as proliferation of diseases, degradation, climate change and negative impact on the wellbeing for affected people.  

The management of waste materials in the office, such as used batteries, paper, cups, and other resources should also be assessed.  

The potential applications of this assessments are to compare two scenarios about solid waste and disposal, with the current business as usual as a baseline compared to improved waste management. Next to this, the willingness exists to communicate results internally and externally.

WHAT?: What was the scope of the assessment? 

The focus of this assessment is internally first. By targeting management and employees, it is hoped that the results will lead to more conscious behaviour of employees, to increase recycling and encourage businesses decisions that are less harmful to nature.  

Waste management within the direct operations will be analysed and impacts assessed through a qualitative and quantitative analysis. The assessment is applied to the largest of the two offices where 40 employees work and the first factory.  

Data to assess the chemical disposal of waste was not sufficiently provided to include in the analysis. However, current investments are made in a new mechanical system that will completely replace the chemical process of coating the seeds, and within one year the factory will not need most of those products anymore. ISO 14001 certification is being obtained for this part of the operations. 

HOW?: What was measured and valued? 

The usage of paper, batteries and plastic cups have been assessed. The current usage of paper is compared to a scenario of paper use reduction and recycling. Similarly, batteries and plastic cup usage are measured and valued against the baseline. 

WHAT NEXT?: What were the results of the assessment? 

As a result of the assessment the following measures will be taken by SOESP: 

• Employees will be instructed to use paper on both sides and used paper will be shredded and used as box filling. The expectation is that this will lead to 70% reduction in monthly paper purchases, and a cost saving of more than €600 and 12 trees a year. 
• The IT department will buy 60 rechargeable batteries.   This will save approximately €260 on battery expenditures, an annual reduction of 420 batteries thrown away and 10 kg less toxic waste. 
• Every employee received a reusable cup. This avoided discarding 45,000 cups in 18 months 
• SOESP created a new job for rolling out the implementation of ISO 14001.  

Learn more about SOESP here.

The below answers are paraphrased from a longer discussion, which can be accessed in full here.

Business Context

Apollo Tyres Limited (ATL) is an Indian company dealing in manufacturing of tyres and other such materials. ATL has formed a dedicated organization named Apollo Tyres Foundation (ATF). ATF works with a community-based organization of women farmers which has around 2000 members, most of whom used to employ unsustainable and synthetic fertilizers in agriculture. ATF created a dedicated program to move these farmers to organic farming. To date, 50 individuals have already made this transition and ATF’s target is to bring more farmers under the net of sustainable agriculture through the means of natural and organic farming.

This assessment was carried out by Ecociate

Assessment
WHY? What is the objective of the assessment?

The objective of the capitals assessment is to demonstrate and communicate the natural, social and human capital value of a program supporting women organic farmers.

There is an awareness of several dependencies such as on soil health and water and impacts on GHG emissions and gender rights, among others. These impacts and dependencies could create societal risks and opportunities for ATF.

WHAT? What is the scope of the assessment?

The assessment could benefit potential buyers of organic produce, including organic brands, e-commerce platforms and end consumers. Another aim is to provide local communities with easier access to organic foods.

The anticipated benefits of this assessment include helping the measurement of the real impact being brought by the project around the four capitals. Further, valuation of quantifiable impact areas may help the program in leveraging the carbon-based financing to scale up the initiative. The assessment may help in communicating the benefits to other farmers in the vicinity to adopt organic farming practices for larger benefits. This may also help the ATF management in taking an informed decision around the scale-up of this initiative.

HOW? What is measured and valued?

The organic farming and market linkage project is focused around promoting organic and regenerative agriculture practices among the women farmers in the project area. The activities conducted so far, have informed the focus on the three impact drivers to value.

These impact drivers are herbicide and pesticide use, soil health, and gender rights.

In terms of herbicide and pesticide usage, the number of sprays was used as an indicator to qualitatively and quantitatively value the impact to society and to business. A reduction of the number of sprays would provide access to safe and chemical free foods to farmers and consumers and reduce cost of cultivation to farmers. The potential of cost of cultivation reduction to farmers would be up to 30%.

Improvement in soil organic carbon levels as a change in capital, has a positive impact on society as healthy soil can sequester a higher amount of CO2, which is a major factor in climate change. The value of this change for the business has not been calculated as of yet.

Gender rights and gender empowerment led to a change of capital in the role of women in decision making and a better income to women farmers. This has had a impact on society, as female farmers have gained the knowledge and skills, thus are better equipped for decision making. Overall, 50 women farmers received 20-30% premium on their produces from organic buyers.

WHAT NEXT? What are the results of the assessment?

The program has a significant impact on both society and environment. The project has helped women farmers in reducing their cost of cultivation while improving the soil health and contributing to other environmental benefits. The families have access to safe, healthy and nutritious foods. The project has significantly reduced the application of synthetic pesticides and fertilizers, which may have led to reduction of GHG emissions. However, the volume of reduction in emissions is still needed to be calculated, while also ensuring fair and equitable share to women farmers. The capitals assessment framework was found to be an important tool in that direction. This has been the first attempt towards documenting the impact, measuring and valuations could be the next step.

Key assumptions and a sensitivity analysis have not been conducted so far. We are planning to use the statistical tools and models to measure the valuation of key intervention and impacts. Once it is done, the findings will be presented to the management and will be used for circulating among the external stakeholders.

The strength of the assessment was that it brought clarity on the indicators, impact drivers and the dependencies. The weakness is the lack of clarity on the valuation measures and mechanism. The learnings and conclusion will be shared with both internal and external stakeholders. This may also be presented in appropriate conferences and workshops to the larger audience

The results from the assessment are encouraging for the mentioned impact driver. These will be integrated into training modules for farmers to encourage them to value the benefits of organic farming, especially around the reduced cost of cultivation and benefits to human health. These results are good to further expand the base of organic farming in the project area.

Business context 

APEAM is a Mexican civil association of avocado growers, packers and exporters. 

Assessment 

WHY?: What was the objective of the assessment?  

The board of directors of APEAM decided to work on a project related to environmental assessment and planning of sustainability targets and strategy. In order to do this an evaluation of the state of conservation of forest, biodiversity, water and soils (natural resources) in an avocado region was needed to create the best “agricultural practices” scenario for avocado in Mexico. The envisioned business application is to assess risks and opportunities and assess impacts on stakeholders.  

WHAT?: What was the scope of the assessment? 

The focus is to know the environmental impacts in order to shift to sustainable production practices, packaging and exporting methods, to fulfil the environmental requirements of the international markets. The capitals assessed are natural and social capital. The organizational focus is on the project level, focusing on direct operations. Both the value perspective of business and society were assessed. Impacts and dependencies were both considered. 

HOW?: What was measured and valued? 

Biodiversity, land and soil, fresh water and employment & remuneration were the capitals considered material to this assessment. The valuation was integrated in a ‘Green Agenda’ technical report to integrate the first diagnosis and to establish the environmental goals and strategy for APEAM.  

WHAT NEXT?: What were the results of the assessment? 

Based on the assessment it was decided that there would be a benefit for both business and society in the establishment of forest reserves in the region. These should be financed by the avocado growers in order to preserve the ecosystem and climate conditions. The high standards for water management need to be maintained, by using water responsibly and conserving it as much as possible. Regarding soil and land, it was decided that the high standard of conservation should be maintained, and the soil should be protected from the chemical use of fertilizers and pesticides.  To maintain the health of workers, the high-level standard on training regarding the usage of agrichemicals should be maintained and the workers should be protected from this. Also, the soil and water should be protected from agrochemicals. The assessment showed that the living standards for workers and employers in the area should also be improved.  

APEAM will put effort into the creation of the sustainable forest conservation and will apply to the sustainable avocado certificate issued by the federal government. As a result of the project, APEAM and BANORTE are discussing potential collaboration, as well as “Mexico Reforesta”.  

Positive results are found on the following aspects: 

• Water quality in the aquifers of the avocado zone, with no water pollution due to responsible agrochemicals use in the avocado belt.  
• The corporate social strategy study indicates a poverty reduction in the zone, due to a permanent job in many young people working in the packing avocado packing rooms, as well as in the avocado orchards.  

APEAM is now analysing water conservation practices and efficient use of irrigation systems along the avocado belt to make the avocado belt sustainable.   

Learn more about APEAM here.

For more information on APEAM visit here. (in Spanish)

Business context 

GFNorte (part of BANORTE) offers a wide variety of products and services through its brokerage firm, pension and insurance companies, afore, investment funds, as well as leasing and factoring companies and warehouses. We are the second largest financial group in Mexico, the number one provider of loans to governments and the second most important bank in mortgage loans, with a net profit of $36,528 million pesos in 2019.  

In the future, GFNorte seeks to increase financing for sustainable activities. 

Assessment 

WHY?: What was the objective of the assessment?  

To quantify financial risks derived from exposure to natural, human, social and produced risks. By doing so, BANORTE hopes to minimize financial risks derived from exposure to environmental and social risks, improve training of the specialized agricultural area on the importance of natural, human, social and produced capital and involve with clients more.  

The envisioned business application is to assess risks and opportunities. 

WHAT?: What was the scope of the assessment? 

The agricultural portfolio was the focus of the assessment. Material impacts as well as dependencies of all capitals were assessed. The chosen value perspective was both the perspective of the business and society.  

HOW?: What was measured and valued? 

The dependency on water availability was assessed. The impacts of soil quality, agrochemical usage and the impact on land use were considered in terms of natural capital. Regarding social capital workers health and safety and the exposure to fertilizers were taken into consideration. The techniques used were qualitative, quantitative and monetary valuation techniques.  

WHAT NEXT?: What were the results of the assessment? 

The results of the evaluation made it possible to observe the potential of the bank’s agricultural portfolio to be able to offer financial products or services that benefit clients that incorporate the best sustainability practices. We have worked with the Agricultural Specialist Area and the Risk Area to incorporate the opportunity to create sustainable financial instruments as part of their annual objectives and to follow up during 2021. 

Additionally, as part of Banorte’s Social and Environmental Risk Management, we will emphasize the incorporation of specific criteria associated with multi-capitals, within the social and environmental due diligence of our clients: 

• Legal compliance: Current land use authorization
• Water: use of efficient technology for the use of water
• Fertilizers: use organic products or products with minimal environmental impact (vermicompost and compost), avoiding substances of international prohibition asestablishedby our exclusion list. 
• Working conditions: hiring policies, (gender, origin, age, nationality, educational level), benefits (working hours, benefits). Safety practices to ensure health and safety.

Learn more about BANORTE here.

For more information on BANORTE visit here. (In Spanish)

Business context 

Grupo Herdez is a leading producer of shelf-stable foods and one of the main players in the ice cream category in Mexico, as well as one of the leaders in the Mexican food category in the United States. Grupo Herdez wants to continue to grow, consolidate, and position itself as a leading organization in the food, beverage and wellness products sector, recognized for their quality and for the effectiveness of its efforts aimed at ensuring the satisfaction of the needs and expectations of its clients and consumers, within a framework of competitive care and service, under strict criteria of quality, safety, profitability, strategic potential and sustainability. 

Assessment 

WHY?: What was the objective of the assessment?  

The objective of this assessment is to compare different irrigation systems (sustainable agriculture versus traditional agriculture) for the adequate management of the water resources, seeking to reduce the risk of scarcity or low availability. With this objective in mind, Grupo Herdez hopes to improve their water resource management and the management of irrigation systems and to gain insight in comparative advantages between traditional and sustainable agriculture. 

WHAT?: What was the scope of the assessment? 

This assessment has an organizational focus and focuses on upstream operations. The specific focus of this assessment is on tomatillo and tomato suppliers who, with the support and collaboration of Grupo Herdez, develop actions for efficient water consumption, migrate from traditional agriculture to sustainable agriculture. This study covers the obtaining, transport and storage of tomato and tomatillo. 

The assessment will focus on the dependency on water mostly, through both quantitative and qualitative valuation. The value perspective focuses on both society and business, as with the assessment Grupo Herdez wants to ensure that the availability of water resources favours the continuity of the production process in the field and supports the rural society at the same time.  

The assessment focuses on natural, human and social capital. Looking into the availability of water, development of environmental training, and shortage in labour availability. 

HOW?: What was measured and valued? 

Grupo Herdez chose several relevant material issues to further measure and value. Initially, they intended to measure and value the following impact drivers: 

Regarding natural capital: 

• Scarcity of water resources /Availability of water 
• Decrease in arable area 
• Decrease in productivity and yield linked to the variation in rainfall due to climate change

Regarding social capital: 

• Rotation of field workers, labor shortage / Maintenance of arable land 
• Generation of source of work / Establishment of double crops 

Regarding human capital: 

• Training for compliance with environmental sustainability programs in the field of water / Knowledge and skills for the adoption of new technologies 

In the end, the assessment mainly focused on the scarcity of water resources and the availability of water by using quantitative valuation techniques. The availability of water was measured through the indicator of annual rainfall in mm/in2. The indicator for change is in the use and exploitation of water impacting on water resource shortage. The impact on the business is that it leads to the reduction of the area and the production of tomatillo and tomato crops.  The water resource shortage leads to higher prices of production and acquisition of raw materials to the business due to lower supply. The society is affected as it will lead to a price increase in the final products of the consumer and an increase in the price of water ($/m3). 

WHAT NEXT?: What were the results of the assessment? 

Grupo Herdez will verify and validate the assumptions made in this pilot application through a cost-benefit analysis that will determine the viability of the implementation of technologies for saving water in tomato and tomatillo cultivation. The level of confidence will be estimated or evaluated according to the results of the implemented project. The interpretation, communication and use of the results could be relevant for agricultural producers and for Grupo Herdez. 

It is estimated that the main actors impacted could be the producers themselves at the time of investing in the project due to the lack of budget to carry it out. However, in the medium term between 3 to 5 years the investment may be recovered, through the benefit-cost ratio that the crop provides. 

The strengths of the assessment are identified as follows:  

• Know that the producer is aware of the need to change the production scheme due to the eminent reduction in the availability and scarcity of water resources. 
• Have advice for the application of new irrigation technologies in the countryside. 
• Strengthening the application of our agricultural sustainability program. 
• Knowledge of new methodologies and tools for risk assessment for natural capital issues. 

Opportunities are: 

• Lack of economic resources for the implementation of the project by the agricultural producer. 
• Availability of information for the evaluation of the project. 
• Even when the producer is aware of his production, there is resistance to change. 
• Lack of awareness and training of the agricultural supplier and his staff. 

The results of the assessment will be shared as follows: 

1. Business partners: providing information of sustainable value about our products. 
2. Other agricultural producers of Grupo Herdez: sharing reproducible success stories in their operations. 
3. Grupo Herdez internal communication: reporting to the organization the results obtained to promote the development of other similar studies with a greater depth of impact. 
4. Interest groups: to share with prior authorization from the group relevant information about the project with clients, national and international industrial and non-governmental organizations, etc. 

For more information on Grupo Herdez’s Sustainability strategy visit here.

Business context 

Veinte Soles is a group of Mexican entrepreneurs and professionals dedicated to the growing, production, and marketing of quality natural vanilla products. The harvest of Vanilla in Papantla Veracruz and its surroundings is a big economic activity, and it is a fundamental part of social and ethnic identity.
​
Acknowledging this and knowing that the cultivation of vanilla is a natural guardian of the environment, we have created, in a joint effort with the community, what Veinte Soles calls the “Program of Associate Producers”. 

The vanilla plant likes to climb on top of trees. Vanilla is one of the few crops that is not yet domesticated. It is still “wild”, and this makes it very difficult to pollinate. The producer that wants to cultivate vanilla, needs to have a very healthy environment. Deforestation is a big issue in this matter. 

For instance, one of the producers currently has a snake plague because the neighbors deforested everything. He has focused on reforestation with native species that are endangered. The people on the field respect vanilla with great respect. This talks about the cultural value of the vanilla in these towns. It is a matter of belonging of this communities.  

Assessment 

WHY?:  What was the objective of the assessment?  

The objective would be to make visible the co-benefits of all the sustainable practices that Veinte Soles do in vanilla production, and with producers, to add value and show benefits to clients that are not captured in the market prices.   

It is a rather sustainable crop. Veinte Soles has worked on cultivating large trees that provide a lot of shadow coverage. One of the risks is climatic change. There has been a lot of droughts in recent years, and so water availability is also a big risk. Sustainability is important in this cultivation.  

Since vanilla is an orchid, it makes it susceptible to pests and soil management. With small changes in practices, vanilla reacts in a bigger scale.  Veinte Soles has a set of modules teaching semi-intensive cultivars, teaching how to grow it in order to be able to pollinate it manually.    

There is a small workforce willing to work the fields. The average age of workers is 45, which is rather old for campesinos. This is usually work for men in this region (operational risk).   

Vanilla was a very culturally rich crop. The Totonacas thought of it as sacred. Women were forbidden to enter the field in pre-Hispanic times. However, women now have a big role in cultivating backyard vanilla.  Young people are leaving the fields and going into the cities, leaving the fields with no workforce. Totonaco was the mother tongue in the surrounding towns, and it is getting lost because the young people are not speaking it anymore.   

Another big risk is the entry to international markets. A lot of practices make the vanilla low quality, and this can damage the reputation in international markets, a reputational risk. In this matter, they have sent the crops to analysis in France so they can analyze the quality. A badly worked vanilla can get fungus if treated incorrectly and it smells unpleasant. Veinte Soles gives a guarantee to fight this reputational risk.   

Another risk is that international markets always want a fixed quantity of crops, and this is difficult given the climatic change risks that producers face today.   

Vanilla is a valuable crop; it gets often stolen.   

The target audience for the assessment are the producer groups, potential investors, and the workers in the field.  

WHAT?: What was the scope of the assessment? 

The scope of the assessment is intended to target Group of associated producers that need capacity building to have better efficient processes that are focused on fair trade, investors, and workers. 

The anticipated benefits of the assessment are that the assessment will support good agricultural practice and sustainable crop care. Hopeful, as a result, investments can be captured and substantial improvement in vanilla production will occur.  

The specified objective is to make visible the co-benefits of all the sustainable practices that Veinte Soles does in vanilla production, and with producers, to add value and show benefits to clients that are not captured on market prices.  

Learn more about Veinte Soles here.