Supporting Forest Conservation through Sustainable Cattle Financing
Supporting Forest Conservation through Sustainable Cattle Financing
Sustainable cattle farming is helping Latin America’s ranchers protect biodiversity while boosting their livelihoods.
Project summary
The livestock sector in Latin America has long faced criticism for its role in biodiversity loss through deforestation and ecosystem transformation. Yet, it remains a vital economic pillar, contributing 46% of the region’s agricultural GDP (1) and serving as a key income source for communities in remote rural areas with limited alternatives.
Recognizing the sector’s potential for positive environmental impact, the eco business Fund Development Facility for Latin America and the Caribbean partnered with financial institutions to promote sustainable cattle farming. Most recently, the Development Facility collaborated with Bancolombia, Colombia’s largest bank, to identify and support clients for its newly launched sustainable cattle product. Through this initiative, 150 clients underwent assessments of their financial, productive, and environmental performance, leading to tailored farm improvement plans that guide their transition to responsible cattle farming models.
Purpose of the partnership
The partnership aimed to transform cattle farming into a driver of ecosystem and biodiversity conservation. Properly managed livestock systems can support local species, enhance grassland health, and deliver essential ecosystem services. Silvopastoral systems, integrating trees, shrubs, and pasture are increasingly adopted by cattle farmers across Latin America as a sustainable solution.
By working with Bancolombia and other Partner Institutions, the eco business Fund Development Facility seeks to empower financial intermediaries to become agents of change, channeling financing toward producers committed to sustainability. This approach not only mitigates environmental harm but also unlocks new income opportunities for farmers.
How we worked together
The Development Facility supported Bancolombia in conducting baseline assessments for 150 clients, evaluating their financial health and environmental practices. Based on these insights, customized farm improvement and investment plans were developed.
One standout beneficiary is Resvolución, a cattle farm that received a detailed improvement plan following an on-site visit and drone-based forest cover analysis. Among the 15 recommended actions was the expansion of its silvopastoral system to include fruit trees, timber, and shrubs. With financing from Bancolombia’s sustainable cattle credit line, Resvolución began implementing these changes.
The additional tree cover provides shade, feed, and soil fertility benefits, while also capturing carbon and creating habitats for vulnerable species such as the howler monkey and American crocodile. Resvolución is also installing a cattle aqueduct to reduce contamination of natural water bodies.
Historically, tree cover was seen as a threat to pasture productivity. However, with adequate feed and management, silvopastoral systems have proven to enhance productivity and reduce environmental footprints. They also offer commercial forestry opportunities and reduce pressure on forest ecosystems by decreasing the need for firewood harvesting.
Through this project, the Development Facility demonstrates that sustainable cattle farming can improve biodiversity performance by mitigating harm and maximizing ecological benefits.
Thanks to the support of the eco business Fund Development Facility, we were able to conduct a forest inventory and a drone survey that helped us to identify potential risks to the forests, making the program much more robust and the ecosystem much more resilient.
Juan Pablo Acosta Arango, General Manager at Resvolución