Cocoa Livelihoods Program

Transcription

1 Cocoa Livelihoods Program TFO - Private Sector Partnerships in International Trade Development Projects - November 14, 2012 WorldCocoa.org

2 WCF: Improving Cocoa Sustainability A one-of-a-kind nonprofit organization promoting a sustainable cocoa economy through economic and social development and environmental stewardship in cocoagrowing communities. People Healthy and thriving cocoa-farming households and communities Planet Responsible, sound environmental practices Profit Improved and more equitable economic returns for farmers

3 100+ Members

4 Our Approach Partnerships that ensure accountability, measurable impact and scale Peace Corps Deutsche Gesellschaft für Internationale Zusammenarbe it (GIZ) International Finance Corporation World Education WCF Bill & Melinda Gates Foundation USAID USDA Swisscontact

5 Cocoa Sector Overview Cocoa grows in the equatorial band: Latin America (13%), West Africa (70%), and Southeast Asia (17%) 90% of cocoa comes from independent, smallholder farms (2-5 hectares) 5-6 million farmers, few organized farmer groups <15% Tree crop: 5-6 yrs to produce On average, low productivity & labor intensive crop Publicly traded commodity, $100 Billion Chocolate/Cocoa Market

6 Note: Ghana and Côte d Ivoire incomes based on an average cocoa farming household size of 6 Sources: Fairtrade Foundation Commodity Update August 2011; Cocoa Research Institute of Nigeria, Ghana Statistical Service, Tropical Commodity Coalition, 2008; World Cocoa Foundation; Bank of Ghana; EIU; IMF Financial Statistics; The Role of Cocoa in Ghana s Future Development, International Food Policy Research Institute; Ghana Ministry of Food and Agriculture, ICCO,, Bloomberg; Global Industry Analysts Rationale for cocoa across all stakeholders Cocoa serves as primary source of income Sources of farmer income, 2011 $1.09 Other Cocoa 90% Ghana $ % Cote d Ivoire Farmers live on less than $2/day $ % Nigeria Average daily per capita income of cocoa farmers, 2011 Market Incentives Production currently in a plateau, but projected to decrease long-term due to continued production challenges. Demand projected to increase by 1 million tonnes over the next 10 years because of increased consumption projections in China and developing nations. In order to be sustainable over the next decade, cocoa supply must increase by approximately 20%. Significant Export Earnings $1.09 $1.21 $1.72 $1.76 $2.33 National export value, Ghana, 2010 Gold 48% Other 24% 28% Cocoa 58% Ag GDP, Côte d Ivoire 42% Other Cote d Ivoire Ghana Cameroon Nigeria Indonesia Cocoa

7 Cocoa Sustainability Challenges Marketing Farmers receive 40-70% of farm gate price Lack of price information and leverage w/ buyers Inefficient service delivery to farmers Production Aging tree populations Plant diseases Decrease soil fertility Outdated cocoa practices Farmers abandoning cocoa for other crops Climate change shrinking areas suitable for cocoa growth Farmer Resilience Farmer vulnerability to climate change Cocoa price fluctuations Dependency on one income source

8 Cocoa Livelihoods Program Goal: Double the income of 200,000 farming households over 10 years (Phase I: ) Objectives: Marketing Efficiency - Farmer Aggregation - FO Professionalization Production Efficiency - Training in GAP - Increase access to credit and agri-inputs - Rehabilitating old cocoa farms Farmer Competitiveness - Training in farm management - Diversification of income sources Model Type: Coalition - BMGF - 16 Industry partners - 4 Governments - IDH & BMZ Extension: 5 Implementing partners national extension services & Matching Grants Total Project Budget: $40M Locations: Cote d Ivoire, Ghana, Nigeria, Cameroon Governance: PMU, Steering Committee, technical committee

9 Opportunities realized through CLP Cocoa value chain as channel for donor agenda to reduce global poverty Knowledge network across agriculture (& health) projects Innovative strategies Improving the productivity gap and market access Financial incentive Ownership & Infrastructure Catalyst & Knowledge Government BMGF (donor) WCF CLP Industry Market Presence & Investment Direct relationships with farmers Vested interest in improving quality and productivity gap Efficient service delivery leverage distribution network Development of reliable source CSR Technical expertise Enabling environment Vested interest in improving quality and productivity gap Strengthening national institutions and infrastructure Workforce and local market economic development

10 CLP Key Accomplishments to Date - 36 FOs (12,500 farmers) training in professionalization - 151,000 farmers trained in GAP, Farm Management, Correct use of inputs - Development of Growth Fund Working capital and Input credit - Transition of extension service to National Agencies - 80% of program funds remain in program countries - Growing collaboration amongst industry partners Innovation Model: Industry Led Development through Matching Grants - 5 Matching Grants awarded in 2011 to 7 CLP companies - Projects focused on CLP Objectives: Marketing efficiency, Production, Farmer competiveness - Reach an additional 35,000 farmers

11 Evolution of CLP structure Original Structure Core Led Program Implementation by 5 core partners 90% funding towards core activities Industry primary role on Steering Committee and some technical participation New Structure Industry Led Program Implementation through industry led Matching Grants Core activities focused on M&E, Knowledge management, innovation testing, coordination & support 90% funding towards matching grants Training institutionalized through national extension services

12 CLP Attributes and Lessons Learned Key Attributes Multi-stakeholder approach creates stronger program and improves long term sustainability Lessons Learned for Success Establishing platforms for knowledge sharing and group decision making i.e. Steering Committee Meeting, task force, web-based knowledge management Need to maintain consistent participation of members Develop knowledge sharing requirement for participation Embed activities with public and private sector Governance structure enables strategic dialogue and adaptability Recognize capacity of partners Support and train partners early in process Develop appropriate and standardized M&E and reporting platform and materials Maintain open, consistent communication Develop platform for participation Harness both public and private sector expertise Know your partners & interests

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