This intervention pillar aims to contribute to the transformation of food production systems, through working with small-scale farmers in Ethiopiaās coffee zones ā achieving sustainable intensification and increase in yields without causing further deforestation, and enhancing access to global markets for sustainably produced coffee. A significant amount (close to 80%) of coffee produced in Ethiopia is from small-scale farmer-managed systems, where levels of management and intensification differ from one system to another. The remaining 20% of coffee production is either under plantation coffee (5-10%) or forest coffee (between 5-10%). The bulk of small-scale production (i.e. the close to 80%) occurs in mixed production systems, where other crops are grown for consumption and market. These small ācoffee farmsā, often not exceeding 2ha, represent perhaps the last corridors and buffers to remaining forests, which are threatened by production of other agricultural crops and commodities.
The change that can be expected as a result of interventions through Component 2 of the project relates to strengthening of smallholder farmer support systems for sustainable agroforestry, with partnerships for investment in sustainable coffee supply chains. Through this component, the project will contribute to the implementation of the Ethiopian Coffee and Tea Authority (ECTA) vision and strategy, to grow the sector, through increased production, productivity, quality and marketability of Ethiopian coffee. This will, in turn, lead to higher level change of better incomes for farmers, reducing pressure on the forest for timber extraction and crop expansion ā as a result of improved agronomic practices, diversification of cash crops, improved agroforestry with indigenous shade-tree species, higher yields including coffee, and higher prices from specialty coffee. This component will make significant investments in a two-pronged approach that promotes increased investments in on-farm restoration/rejuvenation of degraded coffee crops through stumping or pruning by providing an āincentive packageā which includes pruning tools and equipment to farmers who commit to make this investment, and this will be complemented with training by specialized coffee extension agents (i.e. updating the technical skills of existing extension agents and training new ones) who will be trained through the child project to provide integrated technical support to smallholder farmers. The rational is that this investment is needed to increase coffee incomes, which is key to ākeeping farmers in coffeeā as the alternative ā abandoning coffee for other crops - is detrimental to Ethiopiaās remaining forests.