KILKENNY, IRELAND

OCTOBER 2018

46 PUBLIC – PRIVATE MEMBERS

46 PUBLIC – PRIVATE MEMBERS

BEEF PRODUCTION

NATIONAL

STATE

FARM

INTERNATIONAL

DAIRY PRODUCTION

ACTORS• Producers• Auctions• Slaughters plants

ACTORS • Producers• Dairy transport• Dairy plants

Colombian program registered November 2015 as NAMA Registry

(Reduce 20% GEI emissions up to 2.030 starting 2015 base line)

NAMA’S FOCUS

NAMA’S ACTIONS FOR LIVESTOCK

PROPOSALS FOR PRODUCERS

1. Silvopastoral, intensive and conventional systems.

2. Eco efficient practices for conventional productions.

3. Pasture Improvement

4. Conserve and restore natural areas with livestock production articulating with ecosystemic areas.

PROPOSALS FOR PRODUCERS, AUCTIONS AND SLAUGHTERS PLANTS

5. Efficient use of water and wastes guided to use bio inputs (recycle)

6. Traceability to identify animals that come from rainforest fields in order to diminish deforestation.

7. Introduce clean energy production.

8. Use of clean energy for dairy and beef transportation and for its gathering.

PROPOSALS FOR BEEF AND DAIRY TRANSPORT

COLOMBIAN REGIONAL ROUNDTABLES

Antioquia

La GuajiraOrinoquia

Caquetá

Eje Cafetero y Norte del

valle

Córdoba -Sucre

Magdalena Medio

Fuente: FAO

LIVESTOCK

Fuente: ICA, 2018. Elaboró Secretario Técnico CNCCB

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

CABEZAS 22,622,965 22,540,251 23,169,365 23,048,045 22,666,751 22,399,618 22,593,283 22,850,647 22,689,420 23,475,022 26,367,814

22,622,965 22,540,251

23,169,365 23,048,045

22,666,75122,399,618

22,593,28322,850,647

22,689,420

23,475,022

26,367,814

20,000,000

21,000,000

22,000,000

23,000,000

24,000,000

25,000,000

26,000,000

27,000,000

AM

OU

NT

OF

AN

IMA

LSCOLOMBIAN LIVESTOCK 2005-2018

Elaboró: Secretario Técnico CNCCB

CATTLE HERD:

26,3 million

in 30,4 million hct

BreedingCattle:

10,2 million

Bulls:

4,6 million

Double purpose:

10,1 million

Milking Cows:

1,4 million

Bulls: 9 million

Cows: 17,3 million

COLOMBIAN LIVESTOCK 2005-2018

Fuente: ICA, Subgerencia de Protección Fronteriza. Elaboró Secretario Técnico CNCCB

ANIMAL EXPORTS 2015 - 2018

Fuente: ICA, Subgerencia de Protección Fronteriza. Elaboró Secretario Técnico CNCCB

COLOMBIAN BEEF EXPORTS

2017

AMOUNT (Kg.) AMOUNT (Kg.) AMOUNT (Kg.)

CHINA 27.003

CHILE 195.850

UNITED ARABE EMIRATES 24.108 243.608

EGYPT - 108.096

CONGO 25.482 26.250

CURAZAO 1.180.724 466.237 206.792

JORDANIA 2.237.518 4.905.363 980.792

LIBIA 280.756 474.486

LEBANON 501.015 3.636.894 1.345.661

HONG KONG 530.875 1.117.553 917.354

IRAK 77.929 141.979

PERU 262.729 265.799

RUSIA 4.325.973 3.699.671 8.685.653

VIETNAM 135.029 978.504 867.625

TOTAL KG 9.703.289 16.067.793 13.247.485

COLOMBIA (JANUARY 1/2016 – AUGUST 30/2018)

DESTINATION2016 2018

✓ Benefits for 4.000 small and medium sizedproducers in 87 municipalities (12 states)

✓ Friendly production systems with environment

✓ Increase connectivity and provide environmental services

✓ Reduce poverty and increase productivity

✓ Mitigation and adaptation to climate change

RESULTS

ORGANIZE MORE THAN 600 EVENTS, WITHAROUND 10.000 PEOPLE

WITH THE COMMUNITY WE WERE ABLE TO …

✓ CORTOLIMA

✓ CORPOGUAJIRA

✓ REVERDEC

ACHIEVEMENTS

Strategic alliances to provide trees with:

✓ 50 private vivariums

✓ SENA

✓ CVC

PAYMENTS FOR ENVIRONMENTAL SERVICES

Foto: Archivo CIPAV

RURAL EXTENSION

Rural women empowerment

New producers

Generational relief

Decrease 18,5% the production

cost with SSP

USD $576 income x

hct/year in farm with

SSP.

Increase 23% the averageload in field with SSP. Vs.

traditional pastures

COLOMBIAN AMAZON VISION PROGRAM

GGGI, FINAGRO and Earth Innovation Institute have been developed a financial instrument with

blended resources coming from a government institution (FINAGRO), plus Grant Resources from

Amazon Vision Program.

First Floor Financial institution

Executing Agency

Farmers

Credit

GuaranteeAgricultural Fund

80% Credit Guarantee

20%Credit Guarantee Account

Interest rate incentive Account

Release land incentive

$

Technical Assistance

$

Trust

$$

$

$

$$ $ $

$

Potential Off Takers

$

MilkBeef

Monitors Forest Conservation, Areas Released for Restauration and

Regional Planning

Financial Instrument Design

Cooperation/Gvmt $

AMAZON VISION PROGRAM - JDI

At the 2009 Conference of United Nations Framework Convention on Climate Change (UNFCCC),

Colombia announced an ambitious goal to achieve zero net deforestation in the Colombian Amazon

region by 2020 and nationwide by 2030. In order to achieve this goal, the national government is

currently developing two comprehensive programs called "Amazon Vision“, “Joint Declaration of Intent”.

• Livestock is the most important use for land stripped of its forest covered in the

Amazon and nationwide (35-38´has), therefore, grasslands occupy approximately 70%

of said deforested land. Transforming this dominant way of life to sustainable practices,

is one of the most critical challenges for the Amazon Vision and JDI.

• The governments of the United Kingdom, Norway and Germany seek to support

Colombia in achieving its goal of zero net deforestation.

• New financial instruments have been identified among the strategies to contribute to

achieve Amazon Vision’s and JDI goals.

CHALLENGES

LIVESTOCK ACTIVITY IN FIGURES

• 37,4 million hectares in pastures under livestock activity = 30% of the national territory (DANE, 2017)

• 22,6 million of cattle. Load of approx. 0.6 heads per hectare (National Livestock Fund, Fedegan, 2012)

• 550 thousand farms (approx.)

• 28% of rural employment (Fedegan 2016)

• 3.5% of the National GDP (Fedegan 2016)

MAIN CHALLENGES

• Inefficient land use

• 20 million hectares in conflict of use (UPRA, 2014)

• 18.48% of the GHG emissions generated in the country;

• 48.51% of Greenhouse Gas Emissions from the agricultural sector (Second National Communication, 2010)

• Livestock as a speculative vehicle on land

CHALLENGE IN LAND USE

▪ High pressure towards deforestation as it is a colonization frontier

▪ Livestock as the main economic activity

▪ Few incentives for sustainable use of natural forest

▪ Lack of capital to invest in sustainable systems (agroforestry, silvopastoral

systems, etc.)

▪ Lack of formality in land tenure

▪ Lack of technical assistance for sustainable agricultural systems

ITPS FINANCIAL INSTRUMENT

ObjectiveLeverage a nationwide strategy of gradual reconversion of pastures of low livestockproductivity in areas of high ecosystem value, towards sustainable forest landscapes withefficient production systems.

Rediscount Institution

FINAGRO (Second-tier, mixed economy credit entity of the national order linked to the Ministry of Agriculture andRural Development).

First Floor Bank

Banco Agrario in Amazon Pilot. Can be implemented with other private banks in Colombia: Bancolombia,Davivienda, others.

Potential Market

Small Producers (less than USD$60K in capital). Potential in 10 year is 5%of total livestock area, about15.000producers

Size

Pilot Amazon Vision: 100 small producers, 8.000 Ha, 2.400 Ha with conservation agreements, 2.400 Ha restored,total cost USD$1.2 million.Pilots Orinoquia and Antioquia:300 producers,15.000Ha,USD$3´.Scale up 5% area:1´75 million Ha, USD$300 million.

Zero Deforestation

Commitment

Each producer can liberate pasture areas for restoration and receive an incentive of USD$170 per Ha, up to 25% ofthe total amount of credit, payed to capital in two payments (year 1.5 and year 3). Restored areas are defined withtechnical assistance according to landscape and farm planning. Monitoring system to design (IDEAM)

Land Restoration

All beneficiaries require to sign a zero deforestation agreement before credit approval, which conditions thebenefits provided by the ITPS, monitored every year.

ITPS FINANCIAL INSTRUMENT

Loan Amount Up to COP 20 Million (USD 7.000)

Interest Rate

Grace Period

Term

Incentives

Rediscount interest rate: DTF -E.A.. ; Final Interest Rate to the client: DTF (about 6.5%).

Destination Electric fence/solar panels-division of paddocks, livestock aqueduct, mixed fodder bank, live fence, seeds,fertilizer, other supplies

Up to 7 years

1 year

Principal Payments

Tailor made (according to financial planning with each producer), monthly payments.

Incentives, coming from Amazon Vision, conditioned to productive restoration and liberation of areas forforest regeneration• Principal’s Payment reduction: COP 500.000 (USD 150) per released Ha, up to 25% of total principal• Interest Rate reduction: from DTF + 5,5% to DTF (about 6%)

Guarantee 100% by FAG (Agricultural Guarantee Fund – FAG serves to guarantee credits and microcredits underFINAGRO’s conditions)

Geographical scope

First Pilot project: Caquetá and Guaviare departments (Amazon). Scalable to 5% of area in 10 years(Caribean, Central, Orinoquia): 1.75´ ha.

• Approval for pilot implementation in Amazon región (August, 2018).

• Scale up in Antioquia, Orinoquia and other priority regions: Fund raising andimplementation

• Livestock Sustainable Reconversion Program under formulation (CIAT):Opportunity to scale up.

• Adapt to medium and large sized producers.

• Design of Agroforestry and Forestry: transformation of pasture areas into forests-complementarity.

CURRENT STATUS AND NEXT STEPS

(USD $ )

STATES #OPER VALUE #OPER VALUE #OPER VALUE #OPER VALUE

ANTIOQUIA 3.824 67.464.178$ 4.957 106.185.010$ 5.410 140.345.097$ 3.476 76.405.054$

BOGOTA D.E. 307 16.890.152$ 366 16.341.837$ 391 130.684.721$ 193 55.636.673$

CUNDINAMARCA 5.946 56.053.533$ 7.651 66.933.274$ 8.091 67.423.442$ 4.378 30.027.387$

BOYACA 8.560 33.443.456$ 11.208 46.893.985$ 12.562 52.600.427$ 6.462 27.724.117$

SANTANDER 3.457 35.879.480$ 3.915 31.958.467$ 4.237 31.266.438$ 2.480 24.541.418$

CORDOBA 1.289 30.269.325$ 1.730 44.621.044$ 1.776 33.492.049$ 970 19.718.635$

NARIÑO 5.003 16.799.317$ 5.541 19.957.653$ 6.887 27.609.832$ 3.657 15.141.315$

CASANARE 1.407 17.657.008$ 1.824 27.876.251$ 1.800 24.421.133$ 1.304 14.221.824$

VALLE 700 28.876.214$ 837 17.732.979$ 961 38.135.398$ 545 13.607.748$

CAQUETA 2.335 17.778.460$ 2.772 24.001.752$ 2.762 22.501.420$ 1.542 13.296.006$

META 1.210 16.404.409$ 1.831 24.509.704$ 1.780 23.053.876$ 1.098 11.558.774$

CALDAS 687 11.431.396$ 947 14.704.602$ 899 10.952.762$ 528 10.375.095$

BOLIVAR 1.535 10.833.688$ 1.797 16.986.097$ 2.118 20.918.279$ 1.043 9.861.705$

TOLIMA 1.834 12.132.363$ 2.188 14.444.656$ 2.218 26.201.747$ 1.210 9.519.491$

SUCRE 857 10.487.760$ 1.155 11.896.375$ 1.372 13.658.186$ 662 7.936.668$

CESAR 793 14.185.428$ 939 17.472.864$ 1.123 19.058.840$ 532 7.608.555$

MAGDALENA 996 10.819.103$ 1.260 15.179.948$ 1.532 15.790.468$ 595 7.210.141$

CAUCA 2.467 7.119.353$ 2.444 7.606.738$ 2.767 9.975.456$ 1.590 6.429.876$

NTE.SANTANDER 1.653 8.325.087$ 1.619 8.782.409$ 1.951 10.713.804$ 983 5.086.304$

ARAUCA 620 7.355.785$ 614 8.286.565$ 656 7.753.946$ 522 5.044.231$

HUILA 950 6.548.453$ 1.185 7.961.637$ 1.148 8.277.945$ 708 4.645.071$

ATLANTICO 177 16.059.457$ 273 6.146.807$ 381 14.172.196$ 121 3.174.236$

PUTUMAYO 439 2.218.400$ 627 3.668.316$ 819 4.412.771$ 498 3.031.622$

GUAVIARE 220 2.518.505$ 265 3.478.082$ 436 3.506.316$ 295 2.367.027$

RISARALDA 206 1.932.258$ 171 1.617.942$ 216 3.105.818$ 108 2.329.210$

QUINDIO 120 1.824.883$ 125 2.573.256$ 169 2.591.315$ 93 1.951.307$

CHOCO 105 714.616$ 166 1.763.286$ 198 1.624.180$ 143 1.113.387$

VICHADA 113 1.588.734$ 132 2.099.387$ 126 1.273.245$ 65 843.858$

GUAJIRA 56 1.103.176$ 97 1.128.636$ 171 1.646.575$ 34 547.455$

GUAINIA 2 3.333$ 1 5.000$ 8 92.667$ 2 34.667$

SAN ANDRES 1 4.167$ 2 24.167$ 9 6.578.239$ 5 21.067$

AMAZONAS 1 1.333$ 0 -$ 0 -$ 0 -$

VAUPES 1 2.857$ 0 -$ 0 -$ 0 -$

TOTAL 47.871 464.725.669$ 58.639 572.838.725$ 64.974 773.838.588$ 35.842 391.009.923$

LIVESTOCK LOANS

2015 2016 2017 JAN-JUL 2018

CowsRetentionCredit Line

With Subsidy

#

oper

No.

Units

LOAN

(USD $)

#

oper No. Units

LOAN

(USD $)

#

oper No. Units

LOAN

(USD $)

#

oper No. Units

LOAN

(USD $) # oper No. Units

LOAN

(USD $)

CORDOBA 3 179 113.333$ 63 10.997 5.165.686$ 33 3.561 2.178.333$ 15 1.221 700.333$ 114 15.958 8.157.686$

ANTIOQUIA 9 1.288 520.000$ 57 8.813 3.806.723$ 36 4.660 2.268.051$ 12 1.660 702.567$ 114 16.421 7.297.340$

CAQUETA 57 2.087 1.103.333$ 108 5.521 2.670.570$ 28 1.374 625.667$ 54 2.008 1.206.000$ 247 10.990 5.605.570$

CESAR 7 1.339 654.667$ 36 5.083 2.387.367$ 21 2.461 1.222.667$ 12 1.091 655.000$ 76 9.974 4.919.700$

SUCRE 2 17 9.333$ 39 4.806 2.321.533$ 24 2.299 1.198.667$ 14 1.216 534.400$ 79 8.338 4.063.933$

SANTANDER 5 283 148.333$ 35 5.534 1.735.000$ 30 2.867 1.591.400$ 12 791 499.787$ 82 9.475 3.974.521$

META 1 92 16.667$ 28 2.580 1.661.000$ 34 3.668 1.629.047$ 14 2.337 540.000$ 77 8.677 3.846.713$

CUNDINAMARCA 6 308 186.067$ 28 2.710 1.613.000$ 22 1.773 951.117$ 22 1.312 851.333$ 78 6.103 3.601.517$

CASANARE -$ 28 4.676 1.646.800$ 26 2.492 1.077.600$ 23 1.801 756.467$ 77 8.969 3.480.867$

MAGDALENA 2 224 124.583$ 26 4.473 1.739.310$ 22 2.030 1.051.333$ 7 658 361.333$ 57 7.385 3.276.560$

CALDAS 10 1.232 728.000$ 16 1.372 709.195$ 14 1.481 810.000$ 5 605 303.333$ 45 4.690 2.550.529$

HUILA 10 142 72.178$ 52 1.880 945.733$ 20 1.247 634.667$ 11 335 146.000$ 93 3.604 1.798.578$

ATLANTICO 4 681 450.000$ 12 1.588 827.333$ 4 450 273.333$ 1 150 100.000$ 21 2.869 1.650.667$

BOYACA 11 92 58.333$ 43 1.467 893.217$ 14 1.089 594.000$ 4 180 65.333$ 72 2.828 1.610.883$

TOLIMA 2 26 15.667$ 25 1.217 667.267$ 8 1.037 396.333$ 8 322 186.667$ 43 2.602 1.265.933$

BOLIVAR 2 228 146.458$ 10 1.378 755.333$ 5 330 201.667$ 1 18 3.000$ 18 1.954 1.106.458$

VALLE -$ 6 450 300.000$ 9 1.020 577.333$ 3 280 186.667$ 18 1.750 1.064.000$

ARAUCA -$ 8 285 190.000$ 9 627 369.333$ 6 230 115.707$ 23 1.142 675.040$

RISARALDA 1 125 83.333$ 2 172 114.667$ 4 500 260.000$ 3 210 140.000$ 10 1.007 598.000$

LA GUAJIRA -$ 3 605 96.667$ 5 268 178.333$ 1 100 26.667$ 9 973 301.667$

QUINDIO -$ 2 210 63.333$ 5 248 152.000$ 2 120 80.000$ 9 578 295.333$

GUAVIARE -$ 1 140 50.000$ 3 391 155.333$ 1 15 10.000$ 5 546 215.333$

VICHADA -$ 2 210 140.000$ -$ 1 100 33.333$ 3 310 173.333$

CHOCO -$ 1 50 33.333$ 2 165 83.333$ 1 75 50.000$ 4 290 166.667$

BOGOTA D.C -$ 1 87 33.333$ 1 250 53.333$ 1 100 66.667$ 3 437 153.333$

CAUCA -$ 4 229 139.000$ -$ 1 15 10.000$ 5 244 149.000$

NARINO -$ 18 211 140.166$ 1 13 8.667$ -$ 19 224 148.833$

PUTUMAYO -$ 2 31 13.333$ 6 229 104.333$ 2 20 7.333$ 10 280 125.000$

NTE. SANTANDER 1 66 22.000$ 1 32 17.067$ 1 43 23.333$ -$ 3 141 62.400$

Total 133 8.409 4.452.286$ 657 66.807 30.875.967$ 387 36.573 18.669.214$ 237 16.970 8.337.927$ 1.414 128.759 62.335.395$

STATE

2015 2016 2017 2018 TOTAL