The agroforestry myth of sustainable cacao production: evidence from Madre de Dios, Peru

Abstract The increasing global demand for sustainably produced cacao has caused a cacao boom in its centre of origin, the Amazon basin. Cacao agroforestry is widely promoted by state actors and development and conservation agencies as sustainable land-use, providing environmental and social benefits. Despite the extensive research on its benefits, adoption of biodiverse cacao agroforestry remains limited, while monoculture cacao is expanding rapidly. The Peruvian cacao sector is the fastest growing in Latin America, with cacao agroforestry gaining traction. This study addresses the multifaceted reality of the type of cacao agroforestry promoted and its impact on smallholder farming and landscapes in the Peruvian Amazon. It provides a critical analysis of how projects continue to promote cacao agroforestry models despite local evidence of its barriers. We draw from a case-study in the Peruvian department of Madre de Dios, in the Southwestern Amazon basin. Based on two sets of semi-structured interviews with smallholder cacao farmers and representatives of public and non-governmental organizations, we demonstrate a clear contrast in what is promoted and local realities. Our findings reveal the types of agroforestry systems being promoted and the four key barriers to smallholder adopting cacao agroforestry: low cacao yields; limited knowledge of complex cacao production systems; labour constraints; and limited market access for by-crops. We argue that policymakers overlook these challenges, leading to an expanding cacao sector that fails to deliver the promised social and ecological benefits, instead contributing to cacao commodity frontier expansion in biodiverse regions.