When 75% of Waste in Cocoa Farming Becomes the Future of Regenerative Agriculture: From Cocoa Pods to Biochar and Organic Fertilizer

Editor’s Note

This article is part of the impact series of the TRANSFORM: BESTARI Challenge, led by Unilever, the UK Government’s Foreign, Commonwealth & Development Office (FCDO), and EY, supporting visionary enterprises across Africa and Asia. KOLTIVA is proud to serve as an implementation partner for PT Kudeungoe Sugata in Aceh, Indonesia. In this edition, we spotlight the cocoa waste workstream and share insights from Tubagus Risky, Environmental Officer at KOLTIVA, who leads the Cocoa Waste Feasibility Study.

Executive Summary

• Cocoa farming generates up to 75% waste from every cacao pod processed—an overlooked challenge that poses environmental risks but also an untapped opportunity for value creation. Most of this waste is left in the field, creating environmental risks while missing out on opportunities to improve productivity and income.

• As part of the TRANSFORM: BESTARI Challenge, KOLTIVA helps PT Kudeungoe Sugata lead a feasibility study to explore ways to turn cocoa waste into valuable products like biochar and compost. These solutions support regenerative agriculture, reduce input costs, and enhance soil health.

• This circular approach empowers farmers to transform waste into opportunity, paving the way for more sustainable, climate-resilient cocoa farming systems.

Table of Content

• Executive Summary

• Why Tackling Cocoa Waste Matters

  • Farm health and productivity

  • Support circular economy

  • Soil regeneration and yield improvement

  • Climate and ecosystem impact

• Empowering Cocoa Producers Through Circular Solutions

• From Waste to Resource: Practical Impact in the Field with Biochar and Compost

• Empowering Cocoa Producers Through Knowledge and Tools

• Beyond Compliance, Toward Market Competitiveness

Cocoa production generates a large volume of organic waste, as around 75% of the cacao pod is discarded during processing, including husks, pulp, and shells (CarbonClick, 2023). These byproducts are often left to rot on the farm, creating inefficiencies and environmental risks.

But what if that 75% could be turned into something valuable? If managed properly, cocoa waste can help increase farmer income, improve soil health, and revitalize degraded landscapes—turning what was once waste into a catalyst for sustainable farming.

In Aceh, Indonesia, this transformation is already underway with one of our clients, PT Kudeungoe Sugata, supported by KOLTIVA as their implementation partner under the TRANSFORM: BESTARI Challenge, powered by Unilever, the UK Government’s FCDO, and EY. Under this initiative, we help Sugata lead a feasibility study to explore how cocoa waste can drive climate-smart innovation, pioneering a circular model that turns cocoa waste into biochar, compost, and other value-added products, helping producers regenerate their soils and future-proof their livelihoods amid climate change.

Why Tackling Cocoa Waste Matters

The cocoa industry faces multiple paradoxes: while it generates valuable products enjoyed globally, much of its raw material is wasted. Addressing this waste is not only an environmental necessity but also a powerful opportunity to strengthen farmers’ resilience and productivity.

Here’s why tackling cocoa waste matters:

• Farm health and productivity

  Discarded cocoa pods left in the field attract pests and fungal diseases, threatening cocoa trees and reducing yields. By processing waste responsibly, cocoa producers can protect their crops and maintain consistent productivity.

• Support circular economy

  Repurposing waste supports a closed-loop system where byproducts become new resources rather than pollutants. This circular approach reduces farm-level waste and promotes more sustainable input use.

• Soil regeneration and yield improvement

  Converting cocoa waste into biochar and compost enhances nutrient availability, improves moisture retention, and supports stronger soil structure—leading to healthier crops and higher productivity (Switch Asia, 2023).

• Climate and ecosystem impact

  Removing decaying waste from farms prevents soil acidification and nutrient depletion, supporting long-term soil fertility and biodiversity. This also reduces the pressure to clear forests for new cocoa land (WRI, 2024).

Empowering Cocoa Producers Through Circular Solutions

Despite the benefits, many smallholder producers lack access to the tools and knowledge needed to process cocoa waste effectively. That’s where KOLTIVA comes in. As the implementation partner for PT Kudeungoe Sugata supported by the TRANSFORM impact accelerator led by Unilever, the UK Government’s FCDO, and EY, KOLTIVA conducted a Cocoa Waste Feasibility Study in Aceh to evaluate the potential of recycling cocoa waste.

The study found that cocoa pod waste, when left unmanaged, not only contributes to GHG emissions but also threatens farm health by increasing the risk of pest infestations, spreading plant diseases, and degrading soil quality. Through field testing and community engagement, KOLTIVA explored turning cocoa waste into:

• Biochar

• Compost (solid and liquid)

• Livestock feed

• Liquid soap

  
  

Among these, biochar and compost proved to be the most practical and scalable solutions for local adoption, supporting circular agriculture while increasing cocoa productivity.

“The feasibility study helped us identify practical ways to manage cocoa pod waste in Aceh. We tested several options such as biochar, solid and liquid compost, livestock feed, and liquid soap, and found that biochar and compost are the most viable for local adoption. These solutions not only reduce on-farm waste but also improve soil health and support long-term productivity,” said Tubagus Risky, Environmental Officer at KOLTIVA and Lead of the Cocoa Waste Feasibility Study.

These circular economy practices not only reduce pollution but also improve soil health and store carbon, aligning with regenerative agriculture principles. During project implementation, KOLTIVA facilitated the production of biochar and two forms of compost: solid and liquid. Of these, Liquid Organic Fertilizer (POC) gained the most traction among producers due to its simplicity and direct impact on soil fertility.

POC is made by chopping fresh cocoa pods and fermenting them in compost drums for 2–3 weeks. From 50 kg of fresh pods, producers can extract about 1 liter of nutrient-rich liquid fertilizer.

From Waste to Resource: Practical Impact in the Field with Biochar and Compost

As part of the feasibility study, KOLTIVA facilitated a series of on-site demonstrations with local cocoa producers in Aceh, showing how discarded cocoa pods can be turned into biochar and Liquid Organic Fertilizer (POC). These field activities provided hands-on learning opportunities for producers to adopt climate-smart practices that make use of what was once considered waste.

With five composting drums, each processing 50 kilograms of fresh cocoa pods, the team successfully produced a total of 5 liters of POC. This nutrient-rich liquid fertilizer directly improves soil fertility, maintains soil health, and helps farmers reduce their dependency on expensive chemical inputs.

In addition to POC, cocoa pod waste can also be converted into biochar, another valuable product with long-term benefits for soil amelioration and climate change mitigation. When sun-dried and processed through high-temperature pyrolysis with limited oxygen in a simple, self-constructed kiln for household-level production, the same 50 kg of material yields approximately 15 kg of biochar. The biochar improves soil structure and aggregates that support cocoa trees to grow (Zhu et al., 2025). Aside from agronomic benefits, biochar can store carbon for a long time, offering a more sustainable long-term solution for climate change mitigation in the agriculture sector (Lehmann et al., 2021).

“Biochar not only improves soil aeration and water retention but also sequesters carbon in the soil, reducing atmospheric CO₂ levels. This process embodies regenerative agriculture in action—turning discarded biomass into a carbon sink,” Tubagus added.

By transforming waste into valuable farm inputs, this workstream not only reduces dependence on chemical fertilizers but also lowers emissions from open-field waste decomposition or burning. Ultimately, it supports a regenerative farming model that is cost-effective, climate-smart, and producer-friendly.

Empowering Cocoa Producers Through Knowledge and Tools

Beyond technology, success depends on empowering producers with the skills and confidence to adopt new methods.

KOLTIVA’s field teams conducted community training sessions across Aceh, demonstrating simple techniques for waste collection, compost fermentation, and biochar production. Producers participated in hands-on workshops, building their own composting drums and kilns using affordable, locally sourced materials.

“The enthusiasm from farmers was incredible,” Tubagus added. “They saw immediate value in reducing waste, improving soil quality, and creating their own organic fertilizers. It’s about shifting mindsets—from waste disposal to resource regeneration.”

This inclusive approach reflects our work in combining technology, training, and traceability to build sustainable, climate-resilient supply chains that leave no one behind.

Beyond Compliance, Toward Market Competitiveness

The success in Aceh demonstrates what’s possible when businesses, governments, and local enterprises collaborate for impact. With support from TRANSFORM, led by Unilever, the UK Government’s Foreign, Commonwealth & Development Office (FCDO), and EY, we are proving that sustainability innovations can be profitable, regenerative, and inclusive.

With increasing global attention on deforestation-free supply chains and sustainable sourcing, the circular use of agricultural waste positions Indonesian cocoa producers at the forefront.

By combining traceability, data-driven monitoring, and regenerative practices, initiatives like this not only prepare producers for evolving regulations such as the EU Deforestation Regulation (EUDR), CSDDD, and CSRD, as well as the FSMA, but also enhance their competitiveness in premium markets.

At KOLTIVA, we believe every byproduct has potential, and every producer deserves access to the tools and knowledge to unlock it.

“Circular agriculture isn’t just about waste reduction,” emphasized Tubagus. “It’s about redesigning the entire value chain to work in harmony with nature, where smallholders, businesses, corporations, consumers, and ecosystems all benefit.”

If your organization is seeking scalable solutions for circular agriculture, climate resilience, or smallholder inclusion, KOLTIVA is ready to collaborate. Our team of agronomists, environmental scientists, and traceability experts can help design and implement impact-driven programs that make sustainability measurable and actionable.

If this sounds like a solution your business needs, let’s talk. KOLTIVA’s team of experts is ready to help you explore climate-smart, inclusive farming innovations.

Stay tuned as we continue to unpack the five workstreams of Sugata’s project supported by TRANSFORM. In our upcoming articles, we’ll dive deeper into how gender equity, regenerative agriculture, and carbon assessment are redefining sustainable cocoa farming in Indonesia and beyond. Head to the following articles to read the overview of the program and the Gender Active Learning System taking place as part of the cocoa farming transformation in Aceh.

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Author: Daniel Agus Prasetyo, Head of Public Relations & Corporate Communications

Co-author: Gusi Ayu Putri Chandrika Sari, Social Media Specialist

Subject Matter Expert: Tubagus Risky, Environmental Officer

Daniel Agus Prasetyo brings over a decade of cross-industry experience in corporate communications, sustainability, and stakeholder engagement. At KOLTIVA, he contributes to advancing initiatives that connect business growth with social and environmental impact. He is passionate about fostering collaboration and empowering communities, believing that meaningful progress happens when communication bridges purpose and people.

Gusi Ayu Putri Chandrika Sari combines her expertise in digital marketing and social media with a deep commitment to sustainability, supported by over eight years of experience in communications. Her work focuses on crafting impactful narratives that connect technology, agriculture, and environmental responsibility. She is driven by a passion for promoting sustainable practices through compelling, audience-focused content across a variety of digital platforms.

Risky Tubagus Muhamad is an Environmental Officer at Koltiva, driving research, field validation, and climate-smart innovations across smallholder supply chains. With a strong background in soil science, tropical peatlands, and sustainable land use from IPB University, he brings experience from agritech, plantation, and forestry sectors into Koltiva’s sustainability initiatives. He leads workstreams on peatland degradation, GHG footprinting, regenerative agriculture, nutrient mapping, and circular biochar solutions using data-driven methodologies. Known for bridging field science with practical implementation, Risky strengthens Koltiva’s capabilities in carbon management, biodiversity monitoring, and landscape-level risk assessments.

Resources: 

• CarbonClick Limited. (2025, February 27). The environmental impact of cacao growing explained. CarbonClick. Retrieved August 7, 2025, from https://www.carbonclick.com/news-views/the-environmental-impact-of-cacao-growing-explained 

• Lehmann, J., Cowie, A., Masiello, C. A., Kammann, C., Woolf, D., Amonette, J. E., Cayuela, M. L., Camps-Arbestain, M., Whitman, T., … & others. (2021). Biochar in climate change mitigation. Nature Geoscience, 14, 883-892. https://doi.org/10.1038/s41561-021-00852-8 

• World Resources Institute. (n.d.). Hidden benefits of cacao waste. WRI. Retrieved August 7, 2025, from https://www.wri.org/insights/hidden-benefits-cacao-waste 

• SWITCH-Asia Programme. (n.d.). Turning cocoa pod waste into biochar – a success circular economy story from Vietnam. SWITCH-Asia. Retrieved August 7, 2025, from https://switch-asia.eu/news/turning-cocoa-pod-waste-into-biochar-a-success-circular-economy-story-from-vietnam/ 

• Zhu, Z., Zhang, Y., Tao, W., Zhang, X., Xu, Z., & Xu, C. (2025). The biological effects of biochar on soil’s physical and chemical characteristics: A review. Sustainability, 17(5), 2214. https://doi.org/10.3390/su17052214