The biofuels project promotes small-scale biofuel production for local consumption. It is a strategy to create employment, stabilize income sources for small-scale farmers, reduce their dependency on usurers, avoid soil erosion, protect water sources and increase food production.

Even though it might seem surprising, there can be a relationship between food security and energy security. There is a growing consensus about the existence of models that integrate these two components. Generally speaking, this is achieved because of the following production characteristics:

  1. Scale (small);
  2. The markets they serve (local);
  3. The type of production they promote: inclusive (with small-scale farmers) and sustainable (based on oleaginous plants in association with edible crops that guarantee food security and/or based on food crop wastes).

STRO promotes and supports several initiatives of sustainable and integrated food and energy production in Central America. These initiatives prove that sustainable development models exist and that they are viable within a free market economy. One of these initiatives is the Gota Verde Project (Green Drop) in Yoro, Honduras. Gota Verde is a small-scale biofuel production project coordinated by STRO-CA. Because of this project, since 2007 we have searched for and put into practice the answers to the following question:

¿How can the small-scale production of biofuels and food crops be mutually reinforcing?

Some of the answers we have found in practice are:

1. Intercropping: growing food crops and crops destined to the production of biofuels in the same space

Some perennial, oleaginous and native Central American plants such as Jatropha Curcas (popularly known as “pine nut”), are used to produce biofuels on a small scale in isolated rural areas. One of the problems found with Jatropha monoculture systems, however, is that land between each of the plants is wasted. Moreover, Jatropha does not produce much fruit during its first years (it is not until its fifth or sixth year that the plant achieves its maximum productivity). For this reason, it threatens small-scale farmers’ food security, especially those that practice subsistence farming. In order to deal with this problem, Gota Verde promotes an intercropping farming system, leaving between 4 and 5 meters between each Jatropha plant and growing short-cycle food crops such as beans and maize in between. The care required by these crops benefits Jatropha plants while Jatropha plants help reduce plagues, illnesses and act as natural wind protectors.

2. Promoting an integrated finance model for biofuels and food crops

Many farmers cultivate only part of the cultivable land they own. It is estimated that in Honduras 30% of the 2.8 million hectares of cultivable lands are cultivated. Generally speaking, small scale farmers don’t farm all of their lands because of lack of credit. Growing Jatropha can provide a stable income for small-scale farmers and hence help them avoid usurer exploitation and dependency on financial entities. However, it is important to recognize that in the initial phase of the Jatropha plant external support is required.

A successful example is that of the biofuel company BYSA. BYSA was born due to the Gota Verde project. This company required financial support during the initial phase of the Jatropha plant and of short-cycle crops that guarantee food security. The external financing received by BYSA came from both private investors and bank loans. Now, BYSA administers loans for small-scale producers.

BYSA obtains discounts when it buys wholesale agricultural input products. It administers a voucher system with which farmers can go to certain distribution centers to get agricultural inputs. Vouchers can also be used to partly finance BYSA’s operations. To a great extent, BYSA’s expenses in the administration of loans for small-scale farmers can be covered by this discount.

The fact that BYSA administers loans for small-scale producers reduces risks for the following reasons:

  • The risk of not having maize is eliminated because producers can consume the amount of maize they want because the value of the Jatropha harvest is high enough to pay back the loan.
  • The risk of a loan being stolen or diverted is reduced.
  • The risk that farmers will sell Jatropha seeds to others is small.
  • The fact that there are less risks can signify less financial costs for farmers.

3. Guaranteeing the supply of fuel for food production

Fuel is a fundamental input for the production of most food crops. In many developing countries, especially in rural areas, fuel supply is irregular and unreliable. Local production of biofuels can stabilize fuel supply, thus contributing to food security.

For example, in May 2008 there was fuel scarcity in many parts of Honduras. This affected farmers because May is a critical month for agriculture because the rainy season begins. Farmers that had their own fuel due to their participation in the Gota Verde project could work their land normally, while others had to postpone work.

For more information, consult the webpage of the Gota Verde Project.