1 / 22

Development of a Sustainable Cocoa Supply Chain

Development of a Sustainable Cocoa Supply Chain. John Lunde & David Stuart Representing: The Global Chocolate Group January 15, 2003 AGOA Meeting--Mauritius. cocoaAGOAm1d15y03. Sustainable Cocoa:The Beginnings.

fullerb
Télécharger la présentation

Development of a Sustainable Cocoa Supply Chain

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Development of a Sustainable Cocoa Supply Chain John Lunde & David Stuart Representing: The Global Chocolate Group January 15, 2003 AGOA Meeting--Mauritius cocoaAGOAm1d15y03

  2. Sustainable Cocoa:The Beginnings • Smithsonian Sustainable Cocoa Conference 1998- Conclusion:“Cocoa -- An economic engine and conservation tool for the rural tropics”

  3. Sustainable Cocoa Team • Sustainable Tree Crops Program begins in 1998 - shortly after Smithsonian conference. • Initial team: African partners, USAID, USDA, NGO’s, UNDP, International Institute of Tropical Agriculture (IITA) and Chocolate Industry. • Modest beginnings, positive contributions from partners and much learning on industry side.

  4. Sustainable Cocoa Team • Break through goals developed: Sustainability through improving well being of small holders, their families, communities & protecting the tropical environment. • Working partnership expanded and today, includes DOL, ILO, GTZ.

  5. Strength through Partnership • STCP organized into national networks of government, NGO’s, researchers, and farmer organizations • Networks: Ghana, Cameroon, Guinea, Nigeria, and Guinea and they work together regionally! • Managed through IITA • Resources, knowledge shared and leveraged for HOLISTIC APPROACH

  6. The Economics of Cocoa • 3 million T annual production • Current market value of US$ 6 billion • 3% per year annualized increase in demand over last 100 years • 68 to 70% of world cocoa from W. Africa

  7. Cocoa Production Shifts • 1900 - Top three • South America 47% • Caribbean 30% • Africa 15% • 2000 - Top three • Africa 66% • SE Asia 18% • South America 11%

  8. LMC COCOA demand chart 3,500 3,000 2,500 2,000 '000 mt 1,500 1,000 500 0 1900/01 1910/11 1920/21 1930/31 1940/41 1950/51 1960/61 1970/71 1980/81 1990/91 World Cocoa Production, 1900/01-1999/00 2000

  9. World cocoaproduction

  10. ApproximateVolumeof Cocoa Numbers of participants Tonnage of cocoa 600,000 Produce 0.5 - 3 tonnes Farmers Around 5,000 Collects 100 - 200 tonnes Pisteurs Collect and transport 500 - 10,000 tonnes Around 250 Traitants 30 Process and export 10,000 - 60,000 tonnes Exporters 4 - 6 Ship over 100,000 tonnes ShippingLines 5 (US) Processors 9 (US) Manufacturers

  11. Cocoa -- A Small Holder Crop • 1.2 to 1.5 MM farms in W. Africa -- 3 to 7 ha average • 10 MM people on cocoa farms • Supplies up to 56% of the household cash in Ivory Coast • Households growing cocoa are better off.

  12. Cocoa is Critical for Trade • As much as 45% of country’s foreign trade can come from tree crops, including cocoa. • Tree crops supply 19% of foreign exchange for Africa. • Africa has a comparative advantage with cocoa

  13. Cocoa Economics in the U.S. • US averaged around 750,000 T consumption over last 3 years. • 58% of US cocoa comes from W. Africa.

  14. Cocoa Economics in the U.S. • For every $1 of cocoa imported--- $1 to $2 of other ingredients used • For yearly chocolate manufacture • 1.5 million T of sugar • 650 million pounds of milk • 25% of all US peanuts • Cocoa Farmers and US Farmers are truly INTERDEPENDENT

  15. Areas of Focus in STCP • Promote farmer groups • Improve market & trade systems • Research & technology transfer • Work with communities • Cocoa farm diversification

  16. Farmer Groups -- Results • Group marketing of products • EXAMPLE. Group selling increases co-op price by 10 to 25% -- $470,000 in Cameroon in 2000/01 • Co-op management • Availability of inputs

  17. Market and Trade--Results • Shift greater share of world price to farmer • EXAMPLE: Sale timing improves truckload profit by $5,000 • Establish tighter quality specs

  18. Research & Tech Transfer • Identify and increase high yield plant materials • Example: 50,000 plants distributed in Guinea • Biological control of Black Pod

  19. Working with Communities • Co-operative labor sensitization • Example: 15 co-ops sensitized to youth protection • Improve access to education • Traditional • Vocational • Labor Monitoring

  20. Farm Diversification • Identify new shade systems for cocoa • Example: Cameroon multi-crop system shows both high profit & high biodiversity • Develop new shade species • Systems for land rehabilitation

  21. The Challenges Ahead • Streamline the supply chain • Policy changes • Investments in rural sector • Improve social services • Telecommunications/computers • Farm/co-op credit • Cocoa as a reforestation crop

More Related