Water for the future with small sugarcane producers in Ecuador
Name of the project: Water for the future with small sugarcane producers in Ecuador
Call for proposals theme: Water stewardship
Project lead: Compañía Azucarera Valdez
Co-lead: Valdez’s producers, Eco.Business Fund, Banco Produbanco, Asociación de Productores de Mariscal Sucre
Grant awarded: £50,000
Project budget: £69,801.87
Valdez grows and processes sugarcane and its derivatives, including ethanol and bagasse. It’s the second producer of sugar in Ecuador, with 26% of the market share. It obtained Bonsucro certification for its own plantations in 2022.
The initiative is run in partnership with a group of women producers from Mariscal Sucre county, who will also be beneficiaries of the project.
Eco.Business Fund promotes business and consumption practices that contribute to biodiversity conservation, sustainable use of natural resources and climate change mitigation and adaptation, through financing and technical advice to financial institutions and businesses. Sugarcane is one of Eco.Business Fund’s priority sectors.
Banco Produbanco is one of Ecuador’s leading banks, committed to developing and strengthening green financing. The agro-industrial sector is a key part of its sustainability strategy and agenda.
Asociación de Productores de Mariscal Sucre is a local group of small producers in Mariscal Sucre county.
Purpose of the project
This project is part of Valdez’s Sustainable Sourcing Programme, which supports and incentivises the adoption of sustainable practices among the company’s suppliers.
It aims to implement methodologies for the sustainable management of water and climate resilience, and demonstrate their applicability, while empowering women smallholders.
The project will begin with technical research to identify the challenges related to water management among 23 farmers. Additionally, a gender-sensitive assessment will be carried out to identify specific challenges faced by women farmers and resulting opportunities.
Two women-led demonstration plots will be established to showcase selected eco-efficient practices for water management and climate resilience. It will host field visits and training sessions for smallholders. The plots will also enable project stakeholders to compare the impact generated by these practices on efficiency, productivity and soil health.
The project also aims to upskill Valdez’s technicians and suppliers through a “training of trainers” approach. Ultimately, the programme aims to reach 400 suppliers.
Impact measurement will be a key part of the project; the partners will document and share results and impacts to encourage other sugarcane growers to adopt recommended sustainable practices. The impact assessment will also include gender-specific indicators.
Location
The project will take place in Ecuador, in the influence areas of Azucarera Valdez, specifically in the Mariscal Sucre county in the Guayas province. It stands out as an area with high conservation value and is also considered a zone at risk to the impacts of climate change, as evidenced in recent years by the effects of El Niño and La Niña phenomena.
Why this project?
The Bonsucro Impact Fund supports collaborative, scalable and innovative projects that accelerate sustainable sugarcane production.
Scalability
Through the demonstration plots, the project will offer tangible and visible results that can serve as evidence for replication and encourage other farmers to adopt similar practices.
This will be facilitated by the project’s capacity building and training approach among farmers and Valdez’s team.
The existing partnership can serve as a model for engaging new stakeholders, attracting additional mills, NGOs or government agencies.
Financial mechanisms, such as credit programmes or incentive schemes, can support the adoption of eco-efficient practices by farmers and mills. The project’s insights will offer Banco Produbanco and Eco.Business Fund input to strengthen their green financing lines in the sugarcane sector in Ecuador and in Latin America.
Innovation
The project offers an innovative, integrated approach to address key challenges in Ecuador’s sugarcane sector. It recognises and reflects the interconnectedness of water security, climate resilience, landscape health, and women empowerment.
By considering broader landscape dynamics and emphasising the importance of ecosystem services and watershed management, it stands out in a region where sugarcane sustainability is relatively new. The project’s introduction of proven methodologies to Ecuador, coupled with the adoption of the Bonsucro Standard by larger mills in recent years, represents a pioneering effort.
Sustainability
The project’s focus on promoting sustainable practices, improving water use efficiency, and enhancing climate resilience at the farm level will have long-term benefits for the participating farmers and the sugarcane sector.
This also lies in the high focus on capacity building, which means participating farmers will be equipped to implement sustainable practices effectively in an autonomous way beyond the project’s lifetime.
Expected outcomes
- Improved understanding of climate risks and water-related challenges.
- Perceived benefits of sustainability practices by farmers.
- Farmers are better equipped to implement sustainable practices and manage water resources.
- Better recognition of gender-specific needs and strengthened inclusion of women.
Bonsucro Impact Fund
The Bonsucro Impact Fund invests in impact projects that address critical sustainability challenges in the sugarcane sector.
The Bonsucro Impact Funds uses income from the sale of Credits through the Bonsucro Credit Trading Platform.
All trades are charged a transaction fee, around 50% of which is invested into the Bonsucro Impact Fund.
Learn more about the Fund and check for grants available here.
Bonsucro Credit Trading
By purchasing Bonsucro credits for sugarcane, ethanol, molasses and raw sugar, companies support impact projects on the ground through the Bonsucro Impact Fund.
