About Pachamama
A social enterprise that promotes the sustainable utilization of Peru’s dry forests, linking the communities that live in them with global markets.
The dry forests of the North Peruvian coast are located mainly in the Piura region, but also in Tumbes, Lambayeque and La Libertad. It is a valuable and fragile ecosystem characterized by its dense seasonal vegetation. These forests cover an area of approximately 3 million 422,904 hectares, which represents approximately 4.7% of the total forested areas in Peru. It is important to note that, in this region, actions such as illegal mining and illegal logging have been causing an accelerated process of deforestation and negatively impacting this ecosystem.
Pachamama emerges as an urgent response to sustainably promote the preservation of these forest ecosystems, utilizing their potential to produce socioeconomic development and a better quality of life for the communities that inhabit them.
In June, the team of the Entrepreneur Fund, the Wiese Foundation’s innovation program, traveled to Piura, specifically to the province of Ayabaca, the main site of the Pachamama operation. The purpose of this visit was to gain a greater understanding of the work carried out by the social enterprise in the communities of Pampa Larga and San Joaquín. Along this line, the work of the Entrepreneur Fund team was focused on directly evaluating the link that exists between the social enterprise and the aforementioned communities, as well as the quality of the impact that occurs as a result of the presence and operation of Pachamama among the families of the area.
What is palo santo and how does Pachamama utilize it sustainably?
The palo santo, an aromatic sacred wood that comes from the tree “Bursera Graveolens“, is a forest species native to the dry forests of northern Peru. This tree is valued for its sweet and intense aroma with citrus nuances, and some people also attribute to it a mystical ability to attract positive energies, purify and perfume surroundings, and foster a deep spiritual connection.
Unfortunately, the palo santo is currently critically endangered and is listed as a threatened species. To address this problem, Pachamama has established a value chain that allows the sustainable utilization of palo santo. The first stage is the inventory and it concludes with obtaining the forestry permits granted by SERFOR (Forest and Wildlife National Service) to remove from the forest only those individuals (trees) declared dead by the aforementioned public entity. During the second stage of the process, or harvesting stage, the previously inventoried individuals are collected. Both inventory and harvesting are carried out by brigades composed of forest engineers and community members. Finally, in the third and final stage, the harvested “logs” of palo santo are transferred to the Pachamama plant, where a team of skilled women converts them into exportable products in high demand.
Throughout the process, the social enterprise offers a fair price to the community members who participate in the work of inventory and legal utilization of the palo santo, as well as decent employment for the team in charge of the processing. In this way, Pachamama seeks to combat the threat of illegal logging faced by this species and to ensure its conservation.
Pachamama has managed to establish a close collaboration with the communities of “Pampa Larga” and “San Joaquín” and continues to work to establish new formal alliances.
with more communities. These partnerships represent an invaluable opportunity to work together for the benefit of the conservation of this rich and fragile ecosystem, as well as to significantly improve the quality of life of those who inhabit it.
One of the fundamental pillars of Pachamama is to promote fair payment. Hence, the price offered to the communities that participate in the utilization of palo santo significantly exceeds the market average, which is informal for the most part. Furthermore, as of 2022, Pachamama became the first and only company to implement in Peru (to date) a palo santo traceability project. Through the use of a software program based on blockchain technology, the exact coordinates of dead trees suitable for collection are recorded and they are assigned a unique code.
Pachamama not only seeks to protect dry forests, but its business model allows generating economic income for at least 13 people, providing them with fair remuneration for their work in the processing plant. Almost all of these people are mothers from the district of Suyo, Ayabaca, where the company’s main facilities are located.
About its participation in the Entrepreneur Fund
Pachamama is one of the 7 social enterprises shortlisted in the second stage of the Entrepreneur Fund. For Victor Vera, CEO and Co-founder, his experience in the program has been very enriching. It highlights the rigorous and professional selection process with a demanding jury that has given them a valuable learning experience. If you want to know more about Pachamama and its work in favor of the dry forests of Peru, you can visit our website, by clicking here.
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