Honduras

Opportunities for Circular and Inclusive Diversification in Agriculture (OCIDA)

2024 – 2030

The Opportunities for Circular and Inclusive Diversification in Agriculture (OCIDA) project will enhance market systems for smallholder coffee and cacao farmers in Honduras’ Dry Corridor. The project aims to foster climate-resilient and sustainable business practices, improving livelihoods and job opportunities for women and youth in these key sectors. OCIDA is funded by Global Affairs Canada (GAC) and MEDA.

Overview

Goal

The project aims to improve livelihoods and job opportunities for women and youth working in the coffee and cacao sectors of Honduras’ Dry Corridor. It also seeks to address the root causes of irregular migration and to support critical climate adaptation efforts.

Scope

OCIDA intends to create or improve job opportunities for at least 5,250 women and youth and to sustain a minimum of 1,750 existing jobs, with around 3,000 women and young producers gaining access to incentives and capital.

Context

The Dry Corridor of Honduras spans the central and western regions of the country and is a key agricultural hub for coffee and cacao production. However, this predominantly rural region endures unpredictable weather, including droughts, that impact crop yields and livelihoods, in addition to catalyzing migration.

Small-scale farmers in the Dry Corridor face significant challenges, including limited access to modern farming equipment, inadequate post-harvest facilities, and scarce financial and technical resources. These challenges are particularly acute for women and other marginalized groups, who face more pronounced barriers to accessing resources and market opportunities.

Opportunity

Coffee and cacao, which are vital to Honduras’ economy and to global markets, are cornerstones of the nation’s strategy for economic growth, poverty alleviation, and environmental sustainability. OCIDA therefore aims to develop sustainable, inclusive, and profitable cacao and coffee market systems in the country by diversifying and growing agricultural practices and supporting a transition to circular business models. The project will enhance access to information, inputs, technologies, financing, and markets for coffee and cacao producers and enterprises, specifically in the Dry Corridor.

Strategy

OCIDA’s approach is founded on three main pillars:

1. Building increased climate resilience within the coffee and cacao sectors

OCIDA will focus on circular agri-food technologies to enhance women and youth producers’ capacity, promote gender equality, and foster economic and social leadership. The project will deploy specific technological and technical packages to improve soil health, increase agricultural yields, and provide digital solutions for financial and technological education, natural resource management, and market linkages.

2. Improving business performance

OCIDA will concentrate on enhancing the business performance of women- and youth-led cooperatives, associations, and micro, small, and medium-sized enterprises, providing business development services and financial incentives to enhance market access and resilience. The project also aims to enhance market access for these businesses and offer tailored financial services to address the unique challenges rural women face in agriculture.

3. Facilitating an enabling environment for sustainable growth

OCIDA will advocate for improved natural resource stewardship and investments in climate-resilient, circular approaches to foster sustainable growth and decent work opportunities in the cacao and coffee sectors.

Funder

This program was undertaken with the financial support of the Government of Canada provided through Global Affairs Canada.