[{"bbox": [72, 104, 1158, 265], "category": "Text", "text": "Nicaragua's public policy framework for cocoa includes the National Strategy for Promoting Fine or Flavour Cocoa Exports 2020-2023. This strategy is focused on post-harvest management, transformation and value added, access to competitive markets and innovation to climate adaptation. This action is aligned with those priorities, focusing on traceability along the value chain. It will also contribute to the National Plan for Poverty Reduction and Human Development 2021 - 2026, in key action lines such the development of the Caribbean Autonomous Regions through economic development with emphasis on climate change, and the development of a sustainable agricultural sector."}, {"bbox": [72, 290, 1158, 421], "category": "Text", "text": "The EU, together with its MS, is becoming a partner of reference in the area of inclusive and sustainable economic growth, with a strong link to climate change adaptation and mitigation. Building on decades of investments in the water sector and more recently food security and community resilience, this action will consolidate the EU's position in supporting Nicaraguans living in the most vulnerable situations and consolidating the nexus with its humanitarian interventions."}, {"bbox": [72, 449, 1158, 689], "category": "Text", "text": "The action is well-integrated into the priorities of the MIP 2021 – 2027: the action falls mostly under priority 2- “Inclusive and Sustainable Economic Growth” while also contributing to priority 1- “Climate change adaptation/mitigation”. In response to the acute economic crisis currently affecting the country, it will enable the EU to advance human development priorities and target inequalities by working with those living in the most vulnerable situations, namely rural indigenous and afro descendant women and youth, in the least developed areas of the country. Considering the current challenging context in the country, the action will seek to work directly with civil society and the private sector, while creating the foundations for possible guarantees/blending in the medium/long term. Regional efforts for economic integration and trade, also offer valuable potential complementarity to this action, and a possible entry point for future engagement at government level."}, {"bbox": [72, 714, 1158, 927], "category": "Text", "text": "NICACAO is aligned with the European Consensus for Development, specifically with its priorities of protecting the environment, managing natural resources and tackling climate change and inclusive and sustainable growth and jobs. It will contribute to SDGs 1, 2 (2.3, 2.4), 5, 8 (8.4), 9, 12, 13 and 15. The EU Farm to Fork Strategy provides the main policy context for a transition towards a sustainable, inclusive and green production and consumption system, in line with the objectives of the European Green Deal. In Nicaragua, it is an appropriate framework to address the bottlenecks along the food value chains. Lastly, it will also consolidate the EU's leadership in promoting gender equality and social inclusion, in full alignment with the European Consensus for Development and the transformative approach of the GAP III, while contributing to SDG 5 (gender equality)."}, {"bbox": [110, 973, 347, 1003], "category": "Section-header", "text": "## 2.2. Problem Analysis"}, {"bbox": [83, 1041, 1145, 1227], "category": "Text", "text": "Nicaragua has faced three consecutive years of economic contraction (2018, 2019, and 2020). The socio political crisis sustained since 2018 has affected the services sector, reducing formal jobs (by 24.1%) and increasing migration flows. In 2020, the COVID 19 pandemic deepened the crisis in the service sector, and during this time, agriculture, mining and remittances were the key motors for the economy. The cocoa value chain is a key opportunity for reaching sustainable rural development. Nicaragua's potential for cocoa production is up to 350,000 hectares nationwide. Implementing agroforestry systems based on cocoa, fruits and forest, would generate 100,000 tons of cocoa for exports, with a value of USD 157 million."}, {"bbox": [83, 1254, 1145, 1440], "category": "Text", "text": "Nicaragua is strategically positioned to increase its market share of the fine and flavour cocoa markets. The International Cocoa Organization (ICCO) recognizes Nicaragua as 80% fine and flavour cocoa since 2019. It is an area with low levels of cadmium. There is a supply-side limitation: Ritter Sport and other large firms demand larger volumes of fermented and certified cocoa. Cocoa is also a crop for promoting adaptation to climate change: both large firms (with access to large plantations) and local organizations, such as cooperatives, associations or small female-led initiatives, are pursuing adaptation practices. Thus, cocoa is a crop with high potential for business, social inclusion, and environmental gains."}, {"bbox": [83, 1466, 1145, 1652], "category": "Text", "text": "Despite its potential, the cocoa value chain in Nicaragua faces several constraints such as low productivity, several layers of intermediation, low quality and no certifications. There are structural limitations that hamper changes in the current cocoa value chain dynamic: limited or insignificant access to services such as credit, technical assistance, and business management. It is necessary to increase the size of cooperatives and promote inclusive processes of training on productive techniques, bio-inputs, and organizational and administrative issues. It is also necessary to carry out diagnostic studies on flavonoids, cadmium in soils, and flavour and genetic characterization in order to access health-related markets and establish options for traceability."}, {"bbox": [1051, 1663, 1158, 1687], "category": "Page-footer", "text": "Page 6 of 22"}]